## **Enginuity.** **Enginuity (formerly Science, Engineering And Manufacturing Technologies Alliance)** **Report And Consolidated Financial Statements** **for the year ended 31 March** _**2022**_ Company Number: 02324869 Chrn-ity Number: 1000328 ENGINUITY REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 CONTENTS Pagg Advisors R&port of the Chaii- Trust88s'IDii-8ctors' Report 4-18 Independent Auditor"s Report 19-22 Consolidated Statement of Financial Activities Ilnoorporoting Incoine ond Expenditui-el 23 Consolidoted Bolonce Sheet 24 Cliarity Balance Sheet 25 Consolidoted Cash Flowstatement 26-27 Notss to the Financiol Stotements 28-44 ENQINUITY ADVISOR8 FOR THE YEAR ENDED 31 MARCH 2022 Audltor Crowe U.K. LLP 4th Floor, St Jaings Hous8 St Jomes Square Clieltenhani GL50 3PR Rag18ter8d Offlco Uiiit 2, The Orieiit Centre Greycaiiie Road Watford WD24 TGP Inv88tment Manog8r8 CCLA Boord Member8 Dtsnie J Hackitt DBE (Cliairl M Evans S Hunter J Lopes S Pomplin M Tai-ry P Birt S Sund18 K Boswell OBE J Wood V Soward P Pei-era D M61-editli (resigned 19/11120211 A Burke Soiiator House 85 Queen Victoria Street London EC4I14ET BNY Mellon Fund Maiiagors Liinitod The Bank of New Voi-k Mollon Centre 160 Queen Victoria Sti-eet London EC4V 4LA Inva8tm8nt AdviBor Portfolio ￿￿Onager Consultaiicy Ltd Woodiwotei- Houg Pynes Hill Exeter EX2 5WR Chlef Exocutive A Wot$on Banker 8arcloy$ Boiik pl¢ 6916? High Street Wotford VIID17 2BT Sollcltor8 DLA Piper U.K. LLP I St. Peter's Squar8 ancliostor M2 3DE Womble Bond Dickinson IUKI LLP 4 Mol-e London Riverside London SE12AU ENGINUITY REPORT OF THE CHAIR FOR THE YEAR ENDED 31 MARCH 2022 Report of the Chair by Dame Judlth Hackitt DBE Over the last year. the cho116ng&8 w8 foce in the UK ond ocross the world have become even mor8 entrenched and we al-e seeing iiicreasiiigly urgent pressure on tlie oiiginccring and manufacturing sector. In response, we are seeing more innovotion, greater expèrtise, ond increasing flexibility as the sector becomes niore agile: adopting to the d8inonds of Industry 4.0 ond digitoli80tion: the race to Net Zero. the tronsport revolution and a chollenging labour iiiark8t. Engineering oiid nianufocturing businesses ara hungry for skills ot o time when the goveriim8nt's levglling up agenda is relyiiig on the sector to boost productivity ocross oll l-egions of the UK. l ani proLid of tlie role that Enginuity continues to ploy Tn 8UPPOrting engineers and nioiiufactur8r8 to odapt to this fost-paced ohonge. rise to the challenges, ond Inspiro the future work"torce. Over ihe lost veor: our leadersl)ip of the National Monufacturing Sl**Income**
3b
8
3a
3a
3b
7
11
21
21
_Other trding actil1its_
Income from trading subsidiaries
_Investment income_
_Charitable activities_
E>Other
**Total income**
**Expenditure on**
**_Raising fds_**
E>Investment managers' fees
**Total cost of raising funds**
**_Chartable acts:_**
Improving access to learing and encouraging
people into
careei-s in the sector
Promoting and representing the sector
Developing and supporting occupational standards
and learing frameworks
Research into skills gaps and shortages
Othe,-
**Total charitable activities**
**Total expenditure**
**Net income/(expenditure) before gains on**
**Investments**
Net gains on investments
**Net movements in funds**
Total funds brought forward
**Total funds carried forward**
All activities are continuing.|**_2022_**
**2021**
**£'000**
**£'000**
**10,390**
8,121
**792**
811
**711**
262
**264**
196
**12,167**
9,390
**4,216**
3,311
**56**
49
**4,271**
3,360
**3,345**
3,881
**690**
371
**1,246**
1,188
**265**
363
**833**
700
**6,369**
6,503
**10,640**
9,863
**1**
(473)
**1,986**
4,707
**3,502**
4,234
**33,127**
28,893
**36,629**
33,127| |---|---| The notes on pages 28 to 44 form part of the accounts. 23 ## **ENGINUITY** ## **CONSOLIDATED BALANCE SHEET** ## **AT 31 MARCH 2022 (Company Number 02324869)** |**Notes**
**FIXED ASSETS**
Tangible assets
10
Investments
11
**CURRENT ASSETS**
Stocks
13
Debtors
14
Bank and cash balances
**CURRENT LIABILITIES**
Ci-editors: Amounts falling due within one yem
15
Provisions
17
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**CREDITORS: amounts falling due after one year**
16
**NET ASSETS**
22
**FUNDS AND RESERVES**
Unrestricted reserves
21|**_2022_**
**£'000**
**26**
**32,670**
**32,696**
**32**
**1,864**
**4,901**
**6,797**
**(1,366)**
�,4 )
**3,933**
**36,629**
**0**
**36,629**
**36,629**|**2021**
**£'000**
105
31,686| |---|---|---| |||31,791| |||32
1,695
2,483
4,210
(1,474)
�,35
1,361
33,152
(25)
33,127
33,127| The financial statements were approved and authorised for issue by the Born-d on t 29/09/2022 and were signed below on its behalf by: Chair The notes on pages 28 to 44 form part of the accounts. 24 ## **ENGINUITY** ## **CONSOLIDATED CASH FLOW STATEMENT** ## **FOR THE YEAR ENDED 31 MARCH 2022** |**Cash provided by/ (used by) operating activities**
**Cash flows from investing activities**
Investment income received
Poyments to acquire investments
Cash withdrawn from investments
Receipts from the sole of investrnents
**Cash provided by investing activities**
**Cash flow from financing activities**
Repovments of finance leases in the veor
Interest paid on finance leoses
**Cash not provided by financing activities**
**Net increase in cash**
**Cash and cash equivalents at start of year**
Cash and cash equivcilents at end of vear
**Analysis of cash and cash equivalents**
Cash at bank and in hand
**Notes**
a)||**2022**
**£'000**
**702**
**792**
**(36)**
**1,000**
**36**
**1,792**
**(81)**
**6**
**(76)**
**2,418**
**2,483**
**4,901**
**4,901**|**2021**
**£'000**
(1,122)
811
(527)
2,001
500
2,785
(81)
5
(76)
1,587
896
2,483
2,483| |---|---|---|---| ||||| ||||| Refe,- to note b) for the anolysis of changes in net debt. 26 ## **ENGINUITY** ## **CHARITY BALANCE SHEET** ## **AT 31 MARCH 2022 2324869)** ## **(Company Number** |**FIXED ASSETS**
Tangible assets
Investments
Investment in subsidiaries
**CURRENT ASSETS**
Debtors
Bank and cash balances
**CURRENT LIABILITIES**
**CREDITORS: amounts falling due**
**Within one year**
**NET CURRENT ASSETS/ (LIABILITIES)**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**CREDITORS: amounts falling due**
**after one year**
**NET ASSETS**
**FUNDS AND RESERVES**
**Unrestricted funds**
**Notes**
10
11
12
14
15
16
22
21|**2022**
**£'000**
**_26_**
**32,670**
**32,696**
**4,164**
**652**
**4,716**
**(892)**
**3,824**
**36,620**
**0**
**36,520**
**36,520**|**2021**
**£'000**
105
31,686
31,791| |---|---|---| |||520
2,483
3,003
( , -)
**_-,0( (_**
626
32,417
(25)
32,392
32,392| In accordance with section 408 of the Companies Act 2006, a separate Statement of Financial Activities for the charity has not been presented. The result for the charity was a surplus £1,917k (2021: surplus £4,194k). The financial statements were approved and authorised for issue by the Board on the 29/09/2022 � s:gned below on ;ts behalf by, � ## **J Hackitt** Chair The notes on pages 28 to 44 form part of the accounts. 25 ## **ENGINUITY** ## **CONSOLIDATED CASH FLOW STATEMENT (continued)** ## **FOR THE YEAR ENDED 31 MARCH 2022** |**a)**
**Reconciliation of net incoming resources to net**
**cash inflow from operating activities**
Net mo\/ement in funds
ln\/estment income
Depreciation
Decrease in creditors
(lncrease)/Decrease in debtors
Net gain on in\/estments
Mo\/en1ent in provisions
**Net cash provided/(used by) by operating**
**activities**
**At**
**beginning**
**of the year**
**£'000**
**b)**
**Analysis of changes in net debt**
Cash and cosh equi\/cdents
2,483
2,483
Finance leose obligations due in 1 yeor
(25)
Finance leose obligations due in more
(75)
thon 1 year
2,383|**Cash**
**flows**
**£'000**
2,418
2,418
75
2,493
**_2022_**
**2021**
**£'000**
**£'000**
3,502
4,234
(792)
(811)
79
82
(59)
(119)
(169)
429
(1,985)
(4,707)
126
(230)
702
(1,122)
**Non cash**
**At end of**
**movements**
**the year**
**£'000**
**£'000**
4,901
4,901
(25)
4,876| |---|---| The notes on pages 28 to 44 form part of these accounts. 27 **ENGINUITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022** ## **1. GENERAL INFORMATION** Enginuity is a charitable company, limited by guarantee, incorporated in England and Wales under the Companies Act 2006. The address of the registered office is shown on the Advisors page. The nature of the charity's operations and its principal activities are outlined in the Trustees'/Directors' Report. ## **2. ACCOUNTING POLICIES** The principal accounting policies adopted, judge111ents and key sources of esti111ation uncertainty in the preparation of the financial state111ents are as follows: ## **Basis of preparation** The financial state111ents have been prepared in accordance with Accounting and Reporting by Charities: State111ent of Reco111111ended Practice c1pplicable 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) - (Charities SORP 2[nd ] Edition (FRS 102)), the Financial Reporting Standard applicable in the UI( and Republic of Ireland (FRS 102) and the Companies Act 2006. Enginuity rneets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost o,- transaction \/cilue unless othernvise stc1ted in the rele\/ant accounting policy notes. All of the expenditure incurred by the Enginuity is for charitable purposes. The presentation currency and functional currency of the Charity is pounds sterling, and is rounded to the nearest thousand pounds. ## **Parent charitable company disclosure exemptions** In preparing the separate finc111cial state111ents of the parent charitable co111pany, ad\/antage has been taken of the following disclosure exe111ptions a\/ailable in FRS 102: - No cash flow state111ent has been presented for the parent chai-itable co111pany; - Disclosures in respect of the parent charitable co111pany's financial instru111ents ha\/e not been presented as equi\/alent disclosures have been pro\/ided in respect of the Group as a whole; - No disclosure has been gi\/en fo,- the aggregate re111uneration of the key 111anage111ent personnel of the parent charitable co111pany as their ren,uneration is included in the totals for the Group as a whole. ## **Going concern** The directors ha\/e assessed whether the use of the going concern basis is appropriate and ha\/e 111ade this assess111ent based on forecasts to the end of 1\/lmch 2024. As part of their assess111ent the directors have considered the i111pact of Co\/id-19 and 111arket conditions. The directors ha\/e concluded that there is a reasonable e>**PROVISION FOR LIABILITIES**
Balance at 1stApril
Amount released to costs
**Amount provided**
**Balance at 31 March**|**Group**
**2022**
**£'000**
**1,376**
**(1,376)**
**1,499**
**1,499**
**Charity**
**2021**
**2022**
**2021**
**£'000**
**£'000**
**£'000**
**1,605**
**(1,606)**
**1375**
**1,376**| |---|---| This provision represents the costs onticipated to support students who have registered with EAL ond still have units of leorning or exominotions to complete to achieve their qualifications, over the next 5 years. In the accounts for the year to 311\/lmch 202·1, this liability 1/1/CIS shown os Deferred Income. It was reclassified in the year to 31 1\/lrn·ch 2022. ## **18. DEFERRED INCOME** |**DEFERRED INCOME**
Balance at 1 April
Amount released to income
Amount deferred in the period
Balance at 31 1larch|**Group**
**_2022_**
**£'000**
**201**
**(201)**
**_24_**
**_24_**|**2021**
**£'000**
201
201
**Charity**
**_202_**
**£'000**
**201**
**(201)**
**4**
**4**
**2021**
**£'000**
201
201|**2021**
**£'000**
201
201
**Charity**
**_202_**
**£'000**
**201**
**(201)**
**4**
**4**
**2021**
**£'000**
201
201| |---|---|---|---| ||||201| Defe1-red income of £23,500 (2021: £200,549) relates to externally funded projects both from customers within and outside of UI< with deliverables between 1 to 3 years. ## **19. FINANCE LEASE AGREEMENTS** The group had the following finance leases in relation to IT equiprnent: |**Due in:**
Less than one yeor
One to five years
**2022**
**£'000**
**25**
**25**|**2021**
**£'000**
75
25
100| |---|---| ## _**20.**_ **OBLIGATIONS UNDER OPERATING LEASE AGREEMENTS** At 31 1\/lorch 2022 the group has future minimum lease commitments os follows: |**Expiry date**
Less than one year
One to five years
**_2022_**
**£'000**
**_20_**
**10**
**30**|**2021**
**£'000**
244
318
562| |---|---| 42 ENGINUITY NOTES TO THE FINANCIAL STATEMENTS Icontlnugdl FOR THE YEAR ENDED 31 MARCH 2022 21. FUNDS AND RESERVES 022 £'ooo 2021 £'ooo GBnoral unrestricted reservg Group At l April Realised ond Unr8alised gains on iniiestments Incoino r8ceii18d Expenditure 33,12T 1,986 12,167 (10.6401 28,893 4,T07 9,390 19,8631 At 31 March 36.629 33.12T Charity At l April Realised & Unrealis8d gains on investments Income Received Expenditure 32.392 8,T87 1.767 (6.426) 28,198 9,503 1,238 16.5471 At 31 Morch 36.620 32,392 22. NET ASSETS/LIABILITIES Group Chority Unra8trict8d Unrostricted Unr98tricted Unrestricted funds funds fund8 fund$ 2022 2021 2022 2021 £'ooo £'ooo £'ooo £'ooo Tangible fixed asséts Iiivestiii8nts Curi-ent assets Cui-i-&nt liabilities Non-current liabilities Provisioiis 105 31.686 4,210 11.4751 1251 11:3T41 26 32,670 4,716 (8921 105 31.686 3,003 12,3TTI 1251 32,6TO 6,79T 0,365} (1,4991 36,629 33,127 36,620 32,392 43 ## **ENGINUITY** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2022** |**23.**|**FINANCIAL ASSETS AND LIABILITIES**|**2022**|**2021**| |---|---|---|---| |||**£'000**|**£'000**| ||**Group**||| ||Financial assets measured at fair value||| ||through profit or loss|**30,535**|28,551| Financial assets measured at fair value through profit or loss include the investments. ## **24 LIABILITY OF MEMBERS** The charity is constituted as a company limited by guarantee. In the event of the charity being wound up members are required to contribute an amount not exceeding £1. ## **25. RELATED PARTYTRANSACTIONS** Due to the nature of the charity, most trustees will be associated with organisations which may have a financial relationship with the chmity. Opportunity is given for disclosure of any financial or other interest pt·ior to any Board discussions. All transactions involving ot·ganisations in which a member of the Key 1\/lanagement may have an interest are conducted at am1's length and in accordance with Group's financial regulations and normal procurement procedures. During the year the group incurred cost in relation to consultancy services amounting to £8 (2021 £1,015) provided by Anthony Watson. The consultant is a close family member of the Group's Chief Executive Officer. During the year the group incurred cost in relation to consultancy services amounting to £1,125 (2021: £0) provided by Rob Townsend. The consultant is a close family member of Group's Chief Executive Officer. During the year the group incurred cost in relation to services amounting to £17,500 (2021: £30,675 from Get 1\/ly First Job. One of a number of shareholders of Get 1\/ly First Job is a close family member of the EAL's Chief Operating Officer. At the year end there were no balances outstanding to or from related parties. 44