The Trustees present their annual report and financial statements for the year ended 31 August 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 governing document, 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)".
The Charity’s objectives are:
To advance education, in particular through the provision of alternative education for young people who require specialist support to access learning.
To provide facilities and services for the benefit of the local community, including charitable retail activities that support the sustainability of the organisation and its educational provision.
The Charity no longer provides accommodation or housing-related services, and all such activities have ceased.
Achievements and Performance
Significant Activities and Achievements
The Charity’s work during the year has been focused on two core areas:
Delta Independent School
Delta Independent School continues to deliver high-quality alternative provision for young people who require additional support to engage in education.
The school’s mission remains:
“To unlock the potential of all our young people, to liberate them from past experiences and empower them to change their future.”
During the year:
The school has maintained stable referral levels, with a consistent demand for placements
Curriculum development has continued to evolve to meet the needs of learners, including a strong focus on engagement, employability, and personal development
Safeguarding and mental health support have remained central priorities, reflecting the increasingly complex needs of the cohort
The Charity has continued to explore strategic opportunities regarding the future of the school, including discussions with a Multi Academy Trust in relation to a potential transfer or academisation.
Whilst no final decision had been made at the balance sheet date, Trustees recognise that such a transition, if progressed, would represent a significant structural change for the Charity. Trustees are actively considering how best to ensure continuity of provision and long-term sustainability in the interests of beneficiaries.
Charity Shop
The Charity Shop remains an important part of the organisation’s activities:
It continues to generate valuable unrestricted income to support the Charity’s objectives
Donation levels remain strong, supported by ongoing community engagement
The shop provides environmental benefit through reuse and recycling of goods
The Charity Shop operates as a sustainable and well-supported community asset.
Activities Ceased
The Charity no longer delivers the King’s Trust Team Programme
The hostel provision remains closed with no current plans to reopen
Other legacy community activities, including the boxing club, are no longer operated under the Charity
The Trustees have taken a strategic decision to focus resources on core educational provision and sustainable income generation.
Total income in the year to 31 August 2025 was £1,404,970 which is a decrease of £214,298 on income received in the prior year to 31 August 2024 of £1,619,268.
The unrestricted fund deficit made in the year was £370,132, leaving total unrestricted funds at 31 August 2025 at £733,601.
The total restricted deficit made in the year was £12,068, leaving total restricted funds at 31 August 2025 at £426,664.
Reserves Policy
It is the policy of the Charity that unrestricted funds not designated for specific use should be maintained at a level equivalent to between three and six months’ expenditure.
This level of reserves is considered sufficient to:
Ensure operational continuity
Manage cash flow fluctuations
Allow time to respond to changes in funding or structure
This policy has been maintained throughout the year.
Funding and Monitoring
The Charity continues to operate in a challenging funding environment, with reduced availability of grant funding for wider projects and programmes.
The Charity’s financial model is increasingly reliant on:
Education placement funding
Income generated through the Charity Shop
Trustees continue to monitor financial performance closely and review sustainability in light of potential future structural changes
Investment Policy
The Charity holds no current investments.
Principal Risks and Uncertainties
The Trustees have assessed the major risks to which the Charity is exposed. Key risks include:
Financial sustainability and funding pressures
Changes to education commissioning and placement funding
Potential organisational restructuring linked to academisation
Appropriate systems and controls are in place to mitigate these risks, and they are reviewed regularly by the Trustees.
The Charity is a company limited by guarantee.
Chairman - Mr A Watson
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General Manager - Mr N Curran |
Principal - Mr Paul Hillary
Directors
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Recruitment and Appointment of Trustees
Trustees are recruited locally from business, education, and community backgrounds to ensure an appropriate mix of skills.
New Trustees receive an induction pack outlining:
The Charity’s aims and objectives
Trustee responsibilities
Governance expectations
Training is provided where appropriate.
Organisational Structure
Day-to-day management of the Charity is delegated to the General Manager, with the Principal responsible for the leadership and operation of the school.
The Board of Trustees retains overall responsibility for:
Strategic direction
Financial oversight
Governance and compliance
Decisions are made at quarterly Board meetings.
Remuneration Policy
No Trustees receive remuneration.
In accordance with the company's articles, a resolution proposing that TC Group be reappointed as auditor of the company will be put at a General Meeting.
Public Benefit
The Trustees have paid due regard to the guidance issued by the Charity Commission for England and Wales in deciding what activities the Charity should undertake.
The Charity delivers clear public benefit through:
Providing specialist alternative education for vulnerable and disengaged young people
Supporting improved life chances through education, pastoral care and personal development
Operating a charity shop which contributes to community engagement, environmental sustainability, and income generation to support charitable aims
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
In making their assessment, the Trustees have considered the current results and financial position of the Trust and also the impact of the cessation of the Kings Trust contract and potential transfer of the alternative education provision out of the Charity, as detailed earlier in the Trustees’ Report. The Trustees expect that the transfer of the alternative education provision will be completed in January 2027 and have prepared high level projections, which show that the Charity has sufficient resources to continue in operational existence, primarily through operation of its charity shop and rental of its buildings to the new alternative education provider. The scenario whereby the alternative education provision is not transferred has also been considered and the Trustees have concluded that recently agreed price increases for the provision would result in the service remaining sustainable and the Charity therefore having sufficient resources to continue in operational existence for the foreseeable future.
Based on the above, the Trustees consider it appropriate to continue to prepare the financial statements on a going concern basis.
The Trustees' report was approved by the Board of Trustees.
The Trustees, who are also the directors of Delta - North Consett Limited for the purpose of company law, are responsible for preparing the Trustees' 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 Trustees 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 Trustees 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 Trustees 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 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.
Statement as to disclosure to our auditors
In so far as the Trustees, who are also directors of the charitable company for the purpose of company law, are aware at the time of approving our Trustees' annual report:
there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the charitable company's auditor is unaware, and
the directors, having made such enquiries of fellow directors and the charitable company's auditor that they ought to have made, have each taken all steps that they are obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
Opinion
We have audited the financial statements of Delta - North Consett Limited (the ‘Charity’) for the year ended 31 August 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:
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 Trustees' 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 Trustees 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 Trustees are responsible for the other information contained within the annual report. 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. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the Trustees' report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit; or
the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a strategic report.
As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the Charity for the purpose of company law, 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 Trustees 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 Trustees 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 Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The objectives of our audit, in respect to 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; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
Our approach was as follows:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the trustees and management (as required by auditing standards), and discussed with the trustees and management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102, the Companies Act 2006 and the Charities Act 2011) and the relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and the Charity's performance;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the Charity has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how management monitors those programmes and controls.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
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 (irregularities) 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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-forauditors/Auditorsresponsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx.
This description forms part of our auditor’s report.
Use of our report
This report is made solely to the Charity'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 Charity's members 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Delta - North Consett Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is YMCA Parliament Street, Consett, Co Durham, DH8 5DH.
The principal activity of the charity is the provision of education and training to young persons.
The financial statements have been prepared in accordance with the Charity's governing document, 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)". 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, modified to include investments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
In making their assessment, the Trustees have considered the current results and financial position of the charity and also the impact of the cessation of the Kings Trust contract and potential transfer of the alternative education provision out of the Charity, as detailed earlier in the Trustees’ Report. The Trustees expect that the transfer of the alternative education provision will be completed in January 2027 and have prepared high level projections, which show that the Charity has sufficient resources to continue in operational existence, primarily through operation of its charity shop and rental of its buildings to the new alternative education provider. The scenario whereby the alternative education provision is not transferred has also been considered and the Trustees have concluded that recently agreed price increases for the provision would result in the service remaining sustainable and the Charity therefore having sufficient resources to continue in operational existence for the foreseeable future.
Based on the above, the Trustees consider it appropriate to continue to prepare the financial statements on a going concern basis.
Unrestricted funds are available for use at the discretion of the Trustees 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 from government, local authority and other grants, whether "capital" grants or "revenue" grants, is recognised when the Charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Donated goods are recognised as income at the time of sale.
All expenditure is accounted for on an accruals basis, net of VAT, and has been classified under headings that aggregate all costs related to each category of expense shown in the Statement of Financial Activities.
Expenditure is recognised when there is a present obligation resulting from a past event.
Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources.
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. Transaction costs are expensed as incurred. Changes in fair value are recognised in the Statement of Financial Activities.
At each reporting end date, the Charity 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 and deposits held at call with banks.
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.
Investments in publicly traded shares are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Transaction costs are expensed as incurred. Changes in fair value are recognised in the Statement of Financial Activities.
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 Company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied exclusively to charitable purposes.
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.
Alternative education
Princes Trust
Charity Shop
Rental Income
Alternative education
Prince's Trust
Room hire
Staff governance costs relate to wages paid to employees whose duties involve administration activities in relation to strategic planning and governing of the Charity. The time spent by employees on these activities is allocated to governance costs.
The average monthly number of employees during the year was:
Staff costs, including pension contributions, are allocated between restricted and unrestricted funds based on the percentage of time each employee has spent on each project over the year.
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.
Prepayments and accrued income includes the Licence for Pemberton Road lasting 15 years. The current value of the lease is £5,583 (2024: £6,583) for a remaining 6.6 years.
The accrued income element comprises £108,950 (2024: £17,049).
Deferred Income relates to Central Panel Places income allocated to Schools and Councils which was receivable in advance of the academic year. Such income will be released to the Statement of Financial Activities during the course of the academic year that it relates to.
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 charge to the Statement of Financial Activities in respect of defined contribution schemes was £20,785 (2024 - £24,791).
Expenses and liabilities relating to the defined contribution scheme are allocated between restricted and unrestricted funds based on the activities undertaken by each member of staff to whom the pension contributions relate.
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.
The specific purposes for which the funds are to be applied are as follows:
Equipment
The equipment fund relates to equipment, including vehicles, purchased for specific purposes as designated by funders. The balance of this fund correlates to the net book value of assets purchased.
Gift of Land
The land which included ancient woodlands, had been given to assist with the provision of the Charity's activities. However, problems with trespassing and vandalism meant the Charity needed to sell and reinvest the funds from the gift. The Charity has obtained a licence to use the land for some of its activities.
Property Alterations
The Property Alterations fund relates to grants received solely for the purpose of improving and altering the Charity's properties. The balance of this fund correlates to the net book value of property improvements and alterations made.
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.
The charity did not enter into any other transactions with related parties during the current or prior period.
Following the end of the reporting period, the Charity sold one of its freehold properties that was surplus to requirements. The carrying value of the property at the reporting date was £37,337 and the gross sales proceeds (before selling costs) amounted to £55,000.
The Charity is also in the process of selling one of its other freehold properties with a carrying value of £83,756 at the reporting date. The transaction is at an advanced stage and the sales proceeds, before selling costs, are expected to be £90,000.
The Charity had no material debt during the year.