The trustees present their report and the financial statements and business plan for the year ended 31 August 2026. The trustees, who are also directors for the purposes of company law, and who served during the year and up to the date of this report, are set out in the Reference and Administration Information.
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 charitable company’s governing document, the Companies Act 2006 and “Accounting and reporting by Charities: Statement of Recommended on 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).
During 2025/26, the Group remained focused on maintaining organisational stability and laying the foundations for sustainable growth, while continuing to uphold high standards of quality. Despite the financial challenges experienced during the year, the Group maintained its commitment to excellence in learning provision and in the services offered to learners and employers. The Group continued to focus on effective financial management, operational efficiency and the long-term sustainability of its provision.
The 2025/26 academic year has been a significant period of development for NSEG, with continued investment in our apprenticeship provision, facilities, staff capability and commercial offer.
The Group’s Charitable Objectives and Activities for 2025/26:
To promote, organise and arrange the provision of training for persons employed or seeking employment in the engineering industry.
To provide support to employers through apprenticeship programmes.
To offer advice and guidance to schools and young persons on engineering careers.
To offer local employers a range of engineering-focused training and support services.
To upskill and link unemployed people with local engineering employment opportunities.
To offer health and safety support advice and guidance to local engineering companies.
The achievement of these objectives has been supported through the following key activities:
Development of Machining Provision
Successfully established a new Machining Workshop, expanding NSEG's technical delivery capability.
Recruited a dedicated Machining Tutor who has progressed rapidly, achieving both their teaching qualification and assessor qualification within six months.
This investment has enabled NSEG to expand its Level 3 apprenticeship offer.
Development of Level 3 Apprenticeships
NSEG successfully developed and commenced delivery of:
Level 3 Maintenance and Operations Engineering Technician (MOET)
Level 3 Machining Technician
This represents an important development in NSEG's progression from a predominantly Level 2 apprenticeship provider towards a broader Level 2 and Level 3 engineering apprenticeship offer.
At any one time, the Group supports 40 – 50 apprentices at Levels 2 and 3.
The Group provide a free recruitment service to all companies looking to recruit an apprentice and manage the full process, from advertising the role, screening candidates through to shortlisting and arranging interviews. This ensures that individuals are fully prepared and job ready.
In addition, the Group has ACE Academy unemployed students seeking their next career opportunity, including individuals interested in progressing into welding and machining roles. This provides another valuable recruitment route for employers seeking motivated individuals who are ready to develop their skills and start a career in engineering or manufacturing.
Employer Training and Skills Support
The Group conduct regular training needs analysis with companies and provides free advice and guidance. Identified training requirements are then formally agreed and delivered by NSEG or, where appropriate, in collaboration with alternative training organisations.
Support for Unemployed Adults
The Group continues to offer programmes to unemployed adults aged 19 and over who are seeking to enter or re-enter the workforce. We work closely with the local job centres, visiting on a bi-weekly basis to engage with individuals and provide information about employment opportunities within the engineering and manufacturing sector.
Following the success of our programmes in Welding and General Engineering, Employability, Digital Skills, and Functional Skills, we have expanded our provision to include additional qualifications such as MIG Welding and Business Improvement Techniques. We have also introduced a new Sector-Based Work Academy Programme in conjunction with the job centre, through which we work with employers to train and recruit individuals for specific job roles.
Schools, Careers and Community Engagement
The Group continues to deliver impartial advice and guidance through engagement with schools and community job fairs. Utilising the Educational Engineering Careers Van and Virtual Welder, participants are provided with interactive taster sessions designed to introduce and demonstrate key engineering principles.
These activities raise awareness of engineering as a potential career path and inspire individuals to explore opportunities within the sector.
Health & Safety Support
The Group successfully recruited a Health & Safety Officer following a prolonged recruitment period after the previous Health & Safety Officer left the organisation.
Health and Safety support for member companies has continued, helping to ensure compliance with legislative requirements, with NSEG acting as the competent person for many organisations. The Group provides advice, guidance, and general support through onsite inspection visits, as well as by telephone and email. Membership costs have remained static for another year, and the Health & Safety service and associated training have continued. The Health & Safety Service and membership costs are under review for 2026/27.
Marketing and Business Development
The Group has continued to invest in the development of its marketing and business development activities, including marketing materials, employer engagement, social media activity and promotion of apprenticeships and training provision.
This activity will continue to support the organisation’s growth strategy during 2026/27.
Investment in Staff
During 2025-2026, NSEG continued to invest in its workforce. Salaries and holiday allocations were further enhanced to support staff retention and assist in attracting high-quality talent.
The Group has referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing its aims and objectives and planning future activities and investments. The trustees believe that the Group has achieved its public benefit objectives during the year.
Surplus funds accumulated over a number of years have been reinvested to enhance opportunities for local people and to support the needs of local engineering companies, in line with the Group’s public benefit objectives.
During the year, the Group continued to make a meaningful contribution to both the local community and the engineering sector by upskilling employees, managing apprenticeship programmes and providing targeted programmes for unemployed individuals.
A comprehensive breakdown of the group’s performance can be seen below:
Adult Skills Funding Stats Targets v Actual Stats | Target | Actual Stats |
L1 / L2 NVQ’s | 260 | 289 |
Employability Skills / Functional Skills (Maths/English/Digital) | 200 | 221 |
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Qualification Achievement Rates
Apprenticeships: 81%, significantly above the national average of 65.4%.
Adult Skills Funding: 97%, well above the national average of 84.2%.
Progression for unemployed learners: 70% moved into employment, further education, or apprenticeships upon course completion.
Workplace Level 2 NVQs: 90%
Functional Skills (Maths / Digital Skills): 85%
Overall End Point Assessment results for apprenticeships showed that 59% of learners achieved a Distinction, while 41% achieved a pass.
These consistently high success rates demonstrate the Group’s ability to deliver impactful programmes, enabling both learners and employers to achieve qualifications and access training that makes a meaningful contribution to the engineering and manufacturing sector.
Twenty two apprentices successfully completed their apprenticeship programmes, while 146 unemployed adults completed their courses and attained qualifications through the Ace Academy. The learner cohort was diverse and included male and female learners, individuals requiring additional support, previous offenders, and those with lower academic attainment.
Progression rates for unemployed adults into employment, further education and apprenticeships have been maintained at 70%.
Satisfaction survey results for 2025/26 are consistently high with 100% of employers stating that they would recommend NSEG to other employers and 100% of learners stating that they would recommend NSEG to their friends and family.
The Group has also successfully achieved the Matrix IAG Assessment Standard. Positive feedback from the assessor demonstrated that NSEG has strengthened its approach to information, advice and guidance and to supporting the quality of the learner journey.
The Group have continued to maintain its Ofsted “Good” rating following the full inspection undertaken in December 2023.
The Group continues to hold accreditation from EAL, NOCN, Qualitrain, and Information Commissioner’s Office (ICO), the Institute of Mechanical Engineers, the British Safety Council, the Institute of Occupational Safety and Health, and Cyber Essentials, demonstrating its ongoing commitment to professional, quality and regulatory standards.
To ensure surplus funds are used to enhance the group’s not-for-profit services, the group has designated three areas for the allocation of surplus and current assets.
£902,572 Fixed Assets
£93,000 Staff Contingencies
£500,000 Strategic Development Fund
These designated funds will be shown on the balance sheet and represent a commitment to developing and supporting the Group’s charitable activities.
Following a review of the charity’s reserves, the trustees have determined that £876,000 in cash reserves will be made available to support new opportunities for learners and employers in 2026/27.
Investment powers, policy and performance
In considering the investment of funds surplus to immediate needs, the trustees have adopted a policy designed to achieve maximum returns while maintaining minimal risk of loss.
In line with this approach, funds will be held in bank deposit and building society accounts, with higher-risk investments prohibited.
Financial performance
The Group made a deficit during the year. This was partly attributable to underperformance against key contracts, resulting from a reduction in Jobcentre referrals during the year.
The effectiveness of the referral pathway being impacted by continued changes in jobcentre staffing and work coaches. This ongoing change weakened the consistency of the referral pathway and made it more difficult to establish the sustained relationships required to generate a reliable flow of learners into our programmes.
A significant investment of £400,000 was made in a new, state of the art machining workshop to support the introduction of Level 3 apprenticeships. This investment provides learners with progression opportunities and enables them to develop the advanced practical skills demanded by the engineering sector.
The allocation of funds for this investment was drawn from surplus funds generated in previous years and designed to support the achievement of the Group’s charitable objectives.
Investment was also made to expand the welding workshop, creating additional capacity to support larger cohorts of unemployed adults. The number of welding bays was increased from eight to twelve, with the additional bays equipped with the necessary welding equipment and resources.
The trustees have assessed the major risks facing the charitable company and are satisfied that appropriate systems are in place to mitigate exposure to these risks.
The Group’s objectives continue to focus on sustaining steady growth and organisational stability, while maintaining high standards of quality, ensuring excellence in learning provision and services for learners and member companies.
During 2026/27, the Group remains committed to fulfilling its charitable objectives through the following activities:
Apprenticeships
Apprenticeship starts are projected to increase by 30% compared to 2025/26, supported by the Level 3 apprenticeship programmes, which have been designed to expand provision and respond to employer demand.
Adult Skill Funding
The Adult Skills Funding outturn is projected to increase by at least 10%, reflecting the increased allocation of funding for 2026/27.
The Group was required to procure 60% of its funding for 2026/27 from Stoke-on-Trent City Council following the devolution of funding, with the remaining 40% allocated through the DfE / DWP.
This procurement was a critical in securing future funding and maintaining the Group’s presence within the local area, enabling continued support for individuals seeking employment and employers wishing to upskill their workforce.
School Careers / Job fairs
The group will continue to offer impartial advice and guidance through engagement with schools and community job fairs.
The Educational Engineering Careers Van and Virtual Welder will continue to be utilised to raise awareness of engineering as a career path and inspire individuals to explore opportunities within this sector.
Health & Safety
The Group will continue to provide Health and Safety support to member companies, helping to ensure compliance with legislative requirements, with NSEG acting as their designated competent person where appropriate.
The Group will also continue to provide discounted Health & Safety Training Courses for members. These courses are delivered both at NSEG and directly on employer’ premises, creating further commercial opportunities.
Marketing & Employer Engagement
A more structured and proactive marketing and business development strategy is being implemented for 2026/27, with the objective of increasing NSEG's visibility, strengthening employer engagement and generating sustainable growth across all areas of the organisation.
A key development will be consideration of the appointment of a dedicated Marketing Assistant who can take responsibility for the day-to-day marketing activity across the whole organisation.
This would provide NSEG with the capacity to consistently promote its apprenticeships, ACE Academy, Adult Skills funded programmes and commercial training provision, rather than marketing activity being undertaken alongside existing operational responsibilities.
Governing document
North Staffordshire Engineering Group Training Association Limited (NSEGTA) is a company limited by guarantee, and is a registered charity by its Memorandum and Articles of Association which were last amended in November 2001.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
A Board of Trustees administers the charity. The Board endeavours to meet bi-monthly and at other times when required.
The Board has the power to appoint sub-committees consisting of not less than two trustees for the purpose of making enquiries into, or supervising or performing, any function or duty which, in the opinion of the trustees, would be more conveniently undertaken or carried out by a sub-committee. All acts and proceedings of such sub-committees are fully and promptly reported to the trustees.
A chief executive is appointed by the trustees to manage the day to day operations of the charity.
The pay scales of senior staff are set by the trustees and benchmarked against similar sized organisations operating in the area. The pay of individual members of staff is reviewed annually, taking into account performance, any additional responsibilities undertaken and the financial position of the company.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of North Staffordshire Engineering Group Training Association Limited (the charitable company) for the year ended 31 August 2026.
Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charitable company’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
Since the charitable company’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charitable company as required by section 386 of the Companies Act 2006.
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
North Staffordshire Engineering Group Training Association Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Hanley Technical Institute, 151-153 Marsh Street North, Hanley, Stoke-on-Trent, Staffordshire, ST1 5HR.
The financial statements have been prepared in accordance with the charitable company'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 charitable company is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy.
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:
At each reporting end date, the charitable company 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 charitable company 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 charitable company's balance sheet when the charitable company 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 charitable company’s contractual obligations expire or are discharged or cancelled.
Termination benefits are recognised immediately as an expense when the charitable company 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.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.
In the application of the charitable company’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets, See note 13 for the carrying amount of fixed assets, and note 1.6 for the useful economic lives for each class of assets.
The average monthly number of employees during the year was:
The total amount of employee benefits paid to its key management personnel, including the trustees, amounted to £75,960 (2025: £159,054)
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The obligation under finance lease is secured over the relevant asset included within motor vehicles.
Details of the obligation under finance lease are provided in note 16.
The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
Fixed Assets. This fund represents the net book value of the fixed assets held by the charity.
Staff Contingencies. This fund is to provide resources should the services of the charity be affected by sickness or other absence of staff or should the charity have to make staff redundant.
Strategic Development Fund. This is a fund set aside to ensure the charities sustainability giving it the ability to implement any possible rapid capital investment due to any proposed changes in delivery or apprenticeship developments / requirements, or loss of ESFA short term contract. This would have significant impact on the charity. The charity will rely on its ability to react quickly to those changes required to deliver training, fund new equipment and any other resources required. This will be a significant cost to the charity and must be accounted for and designated as required and reviewed yearly.
At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Amounts contracted for but not provided in the financial statements:
This the estimated cost for the setup of the Machining Workshop, including necessary machinery, equipment, and infrastructure adjustments, to deliver advanced machining as part of the Level 3 Machining Technician apprenticeship standard.
All costs include installation, staff training, and the installation of additional structural girders in the cellar to comply with Health & Safety regulations.
There were no disclosable related party transactions during the year (2025 - none).