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2024-07-31-accounts

Charity registration number 1000381

Company registration number 02283391 (England and Wales)

MORTHYNG GROUP LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

MORTHYNG GROUP LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees P Clements
J Wheatley
C Haywood
J Irving
A Corbridge
M Broxholme
A F Featherstone
S Marsh (Appointed 16 May 2024)
Life President Rev Canon P Wright
Charity number 1000381
Company number 02283391
Registered office North Grove House
South Grove
Rotherham
S60 2AF
Auditor Hart Shaw LLP
Europa Link
Sheffield Business Park
Sheffield
S9 1XU
Bankers National Westminster Bank
Wickersley Leeds Customer Service Centre
1 Victoria Place
Holbeck
Leeds
LS11 5AN
Solicitors Bradford & Son Solicitors
9 Moorgate Road
Rotherham
S60 2EN
Senior Leadership Team C MacCormac MBE (Chief Executive)
C Ellis (Group Director of Finance)
M MacCormac (Group Director of Operations)

MORTHYNG GROUP LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Operational addresses

7-9 Canklow Road Rotherham S60 2JB

52-54 Hamilton Street Birkenhead Wirral CH41 5AE

North Grove House South Grove Rotherham S60 2AF

Suites 3, 4, 5 and 6 First Floor Stuart House 71 Elizabeth Street Corby NN17 1SE

75-77 Sankey Street Warrington WA1 1SL

Rugby Borough Academy Kilsby Lane Rugby CV21 4PN

MORTHYNG GROUP LIMITED

CONTENTS

Page
Trustees' report 1 - 5
Statement of trustees' responsibilities 6
Independent auditor's report 7 - 9
Statement of financial activities 10
Balance sheet 11 - 12
Statement of cash flows 13
Notes to the financial statements 14 - 26

MORTHYNG GROUP LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2024

The trustees present their annual report and financial statements for the year ended 31 July 2024.

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 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)".

Charitable activities

The charity's objects, as set out in its Memorandum of Association are:

The charity's aim is to alleviate the stress caused by unemployment by providing education and learning programmes to those who are unemployed or at the risk of unemployment in the United Kingdom and Europe.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

During the 2023/24 year, a full review of the business was undertaken and a succession plan stage 3 implemented in August 2023, to support the continuing improvements seen and evidenced in the last two years and to maintain stability to 2025 and beyond.

Study Programmes occupancy remained buoyant from August to July and numbers increased due to the closure of another training provider in Rotherham. This enable 100% of contract value to be realised.

Our in-house Football Academy Study Programme in Rugby as well as provision in Rotherham and Warrington, continue to expand. We have reduced our volume of sub-contracting from that in the 2022/23 contract year.

Achievement rates showed improved results again in 2023/24, except for a drop in Maths GCSE’s grade 4 to 9. Total achievement rates of all aims increased again. We saw the rates of G.C.S.E Maths and English achievement grade 1 to 9 maintain at 100% and Grades 4-9 still higher than in the 2019/20 year.

High Needs places continue to grow month on month during the year, but approvals by local authorities remain slow.

In 2023/24, we were still negatively affected by Covid-19, more due to the impact on some learner’s mental wellbeing and attendance rates. The Ofsted inspection in May 2024 was a great result of another Grade 2 GOOD for the 26th consecutive year of inspections.

MORTHYNG GROUP LIMITED

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2024

Learner outcomes Target Actual
ESFA
Study programme 76.0% 82.0%
Functional Skills Maths & English 78.0% 87.6%
GCSE Maths & English grades 1-9 97.0% 100.0%
All Aims 90.0% 92.5%
Core Aims 82.0% 84.0%
Work Related 86.0% 88.0%
Volumes: Starts
ESFA Study Programme All Regions 359
ESFA LLDD All Regions 74
TURING 10
Total 443

Financial review

Reserves policy

The Board and trustees approved the reserves policy for the 2023/2024 financial year at the Annual General Meeting. Their decisions took into account the costs of operating the business, and that of any closure costs of the business to prevent insolvency. To this end, the Board/trustees agreed the following as a minimum:

The nature of the business the charity undertakes with Government funding means that the organisation will always be expending resources in advance of payment for the services being received.

The total reserves at 31 July 2024 were £3,281,578. The reserves policy will be reviewed and agreed at the Annual General Meeting in November 2024 to consider changes in activity, the revised structure and the requirements of the business.

Any surplus income over expenditure above that required to meet the reserves policy will be used either for capital expenditure to improve the premises and equipment used to meet the charity's aims and objectives, or for potential acquisitions or for further expansion of charitable activities.

Investment policy and objectives

The charity's investment powers are set out in its Memorandum and Articles of Association and allow the charity to make any investments which the Board think fit.

Results for the period

The financial results for the year are set out on page 10.

The financial standing of the charity is stable.

MORTHYNG GROUP LIMITED

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2024

Future developments

In the 2024/25 year, we are expecting another improved picture with the growth of vocational options available to our students. We will continue to respond to the local needs of our operational areas and position and resource ourselves accordingly to meet those needs, in line with our charitable ethos.

Our High Needs volume growth, is expected to continue in 2024/25 and again in 2025/26 but not as fast, as Local Authorities budgets are under strain and looking for more local provision than out of area. The South Yorkshire Study Programmes area is our fastest growing provision and we have complemented this with additional new resource investment in Rotherham and Warrington.

Improvement in staff salaries especially to GCSE teaching and learning have maintained GCSE results in August 2024 and we expect this to continue in the 2024/25 year. Improved Functional Skills Maths and English, attainment levels did meet our targets for 2023/24 and are improving.

Morthyng is in the best operational and financial position since 2006. From 2021/22 we have invested in improving staff salaries and conditions. The purchase of our Rotherham Head office complex, was made in October of 2023.

Succession planning for the retirement of the current CEO is well in hand and planned in good time to prevent any hiatus in the ethos and delivery style of the company.

Plans for the future

At the next annual Director strategic day, the board will review the three-year business plan along with our plans for 2024/2025 and 2025/26 and 2026/27 to -

Structure, governance and management

The charity is a company limited by guarantee, without share capital. Its governing instrument is its Memorandum and Articles of Association.

The charity is governed by a Board of Trustees which is responsible for setting the strategic direction of the charity and for establishing policy. The Board consists of eight persons who are unpaid. They receive additional travel expenses for meetings. Trustees who sit on the Quality and Personnel Sub Group and on the F&GP Sub Group, along with the chair of the Board, receive additional responsibility allowances as agreed and approved by the Charity Commission, as noted in note 10 to the accounts. Both the Board and the Finance Sub Group meet every eight weeks. Strategic and policy decisions are made based on information provided by the Chief Executive, contract funders and other external advisors. The Board reviews all policies annually.

MORTHYNG GROUP LIMITED

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2024

The trustees, who are also the directors for the purpose of company law, and who served during the year were:

J P Neal (Resigned 22 November 2023) P Clements J Wheatley C Haywood J Irving A Corbridge M Broxholme A F Featherstone S Marsh (Appointed 16 May 2024)

New trustees are appointed based upon skills required. They are committed to supporting our learners in engaging and participating in training learning. All new trustees will be provided with levels of training and induction that is dependent upon their previous experience. All new trustees will meet with both the Chief Executive and the Chair of the Board to give an overview of the organisation and the expectations required within the role of a trustee. They will be provided with policies, procedures, minutes, accounts, terms of reference and other documents to aid the induction process and support will be provided by the Chair and or other Trustees. Trustees will be invited to visit centres and sub group meetings to develop understanding and experiences of the organisation.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of a winding up.

The charity is managed on a day to day basis by paid professional staff under the leadership of the Chief Executive. He is supported in these duties by the Group Director of Operations and the Group Director of Finance. The charity currently has 46 employees delivering training and education across Yorkshire and the Humber, North West and in Europe.

The Senior Leadership Team makes day to day decisions in line with policies and procedures approved by the Board and in line with Companies and Charities Acts. The remuneration of the key management personnel identified within the financial statements will be determined, monitored and reviewed by the Quality and Personnel and Remuneration sub-committees of the Board of Directors. Factors taken into account will include level of responsibility, context and complexity of the role, benchmarking from similar education providers as well as current and potential business requirements.

Auditor

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

MORTHYNG GROUP LIMITED

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2024

Disclosure of information to auditor

So far as the trustees are aware, there is no relevant information (as defined by Section 418 of the Companies Act 2006) of which the charitable company's auditors are unaware, and each trustee has taken all the steps that they ought to have taken as a trustee in order to make them aware of any audit information and to establish that the charitable company's auditors are aware of that information.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

The trustees' report was approved by the Board of Trustees.

A Corbridge Trustee Dated: 20 November 2024

MORTHYNG GROUP LIMITED

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 JULY 2024

The trustees (who are also the directors of Morthyng Group Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and 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 charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for that period.

In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MORTHYNG GROUP LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF MORTHYNG GROUP LIMITED

Opinion

We have audited the financial statements of Morthyng Group Limited (the ‘charity’) for the year ended 31 July 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of 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.

Conclusions relating to going concern

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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

MORTHYNG GROUP LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MORTHYNG GROUP LIMITED

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees' are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, 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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud and the audit response

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

At the planning stage we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general sector experience and through discussion with management, as required by auditing standards. The potential effect of any laws and regulation on the financial statements can vary considerably. There are laws and regulations that directly affect the financial statements (e.g. the Companies Act) as well as many other operational laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements. Owing to the size, nature and complexity of the organisation and the applicable laws and regulations to which it must adhere, the risk of material misstatement was deemed to be low, therefore the procedures performed by the audit team were limited to:

We have assessed the overall susceptibility of the financial statements to material misstatement due to fraud. Management override is the most common way in which fraud might present itself and is therefore inherently high risk on any audit. Management override, which may cause there to be a material misstatement within the financial statements, may present itself in a number of ways, for example:

MORTHYNG GROUP LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MORTHYNG GROUP LIMITED

In order to reduce the risk of material misstatement to an acceptable level, numerous audit procedures were performed including:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected material misstatements in the financial statements, even though we have performed our audit in accordance with auditing standards. Furthermore, as with all audits, there is a higher risk of irregularities (especially those relating to fraud) being undetected, as these may involve the override of internal controls, collusion, intentional omissions and misrepresentations etc. We are not responsible for preventing non-compliance or fraud and therefore cannot be expected to detect all instances of such. Our audit was not designed to identify misstatements or other irregularities that would not be considered to be material to the financial statements. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

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 charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 auditors' 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.

Martin McDonagh (Senior Statutory Auditor) for and on behalf of Hart Shaw LLP 20 November 2024 Chartered Accountants Statutory Auditor Europa Link Sheffield Business Park Sheffield S9 1XU

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

MORTHYNG GROUP LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JULY 2024

Unrestricted Unrestricted
funds funds
2024 2023
Notes £ £
Income and endowments from:
Charitable activities 3 3,127,487 3,239,008
Investments 4 79,391 26,584
Other income 5 8,660 -
Total income 3,215,538 3,265,592
Expenditure on:
Charitable activities 6 2,460,752 2,657,234
Material other expenditure 12 155,000 -
Total resources expended 2,615,752 2,657,234
Net income for the year/
Net movement in funds 599,786 608,358
Fund balances at 1 August 2023 2,681,792 2,073,434
Fund balances at 31 July 2024 3,281,578 2,681,792

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.

MORTHYNG GROUP LIMITED

BALANCE SHEET

AS AT 31 JULY 2024

Notes
Fixed assets
Tangible assets
14
Investments
15
Current assets
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within
one year
18
Net current assets
Total assets less current liabilities
Provisions for liabilities
20
Net assets
The funds of the charity
Unrestricted funds		 2024
£
£
700,160
2
700,162
265,673
3,293,326
3,558,999
832,971
2,726,028
3,426,190
(144,612)
3,281,578
3,281,578
3,281,578		 2023
as restated
£
£*
43,253
2
43,255
322,980
3,377,856
3,700,836
917,687
2,783,149
2,826,404
(144,612)
2,681,792
2,681,792
2,681,792

*A presentational adjustment has been made between creditors due within one year and provisions for liabilities. This is in relation to a dilapidations provision. Amounts reported in the 2023 financial statements were £1,062,299 and £nil respectively.

The charity is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 July 2024, although an audit has been carried out under section 144 of the Charities Act 2011.

The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charity.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

MORTHYNG GROUP LIMITED

BALANCE SHEET (CONTINUED)

AS AT 31 JULY 2024

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

The financial statements were approved by the trustees on 20 November 2024

A Corbridge

Trustee

Company registration number 02283391 (England and Wales)

MORTHYNG GROUP LIMITED

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2024

Notes
Cash flows from operating activities
Cash generated from operations
23
Investing activities
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed
assets
Interest received
Net cash (used in)/generated from
investing activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2024
£
£
674,547
(847,128)
8,660
79,391
(759,077)
-
(84,530)
3,377,856
3,293,326		 2023
£
£
905,609
(13,052)
-
26,584
13,532
-
919,141
2,458,715
3,377,856		 2023
£
£
905,609
(13,052)
-
26,584
13,532
-
919,141
2,458,715
3,377,856
919,141
2,458,715
3,377,856

MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

1 Accounting policies

Charity information

Morthyng Group Limited is a private company limited by guarantee incorporated in England and Wales and is a registered charity. The registered office is North Grove House, South Grove, Rotherham, S60 2AF.

1.1 Accounting convention

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

1.2 Going concern

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.

1.3 Charitable funds

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees in furtherance to the general objectives of the charity.

1.4 Incoming resources

Incoming resources are accounted for when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied:

Voluntary income, by way of grants and donations, is accounted for when receivable.

Investment income is accounted for when receivable.

Incoming resources from charitable activities are accounted for when earned for service contracts and when receivable for grants.

1.5 Resources expended

Expenditure is charged to the Statement of Financial Activities on an accruals basis, exclusive of VAT where recoverable.

Charitable expenditure comprises those costs incurred in the delivery of its activities and services for its beneficiaries, including both direct and support costs.

Governance costs include those costs associated with meeting constitutional and statutory requirements.

In the opinion of the trustees, all support costs relate to charitable expenditure.

MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

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

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

Freehold land and building 50 years straight line Equipment, computers and vehicles 3 - 7 years straight line

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.

1.7 Fixed asset investments

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

1.8 Impairment of fixed assets

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).

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ (expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

1 Accounting policies

(Continued)

1.10 Financial instruments

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

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

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.

Derecognition of financial liabilities

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

1.11 Taxation

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

1.12 Provisions

Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.

1.13 Employee benefits

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

MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

1 Accounting policies

(Continued)

1.14 Retirement benefits

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

1.15 Leases

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.

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.

1.16 Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2 Critical accounting estimates and judgements

In the application of the charity’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.

Impairment of freehold land and buildings

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. During the year, the charity purchased freehold land and buildings for a cost of £780,000. On 30 May 2023, the charity instructed chartered surveyors to carry out a valuation on the property. The valuation concluded the market value of the property to be £625,000. As a result, the freehold land and buildings have been impaired within the financial statements by £155,000. The valuation was carried out on an open market basis with reference to the selling price of similar properties in the local area.

Dilapidations provision

The dilapidations provision is a provision for the cost of making good the property when the charity exits its commercial operating lease. The charity has used the work of chartered surveyors in calculating the liability included in the financial statements.

MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

3
Charitable activities
Grants and contracts for training
4
Investments
Interest receivable
5
Other income
Net gain on disposal of tangible fixed assets		 2024
£
3,127,487
2024
£
79,391
2024
£
8,660		 2023
£
3,239,008
2023
£
26,584
2023
£
-

MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

6 Charitable activities

Staff costs
Direct costs
Share of support costs (see note 8)
Share of governance costs (see note 8)
Analysis by fund
Unrestricted funds
For the year ended 31 July 2023
Unrestricted funds
Direct costs
Learner travel expense
Learner refreshments
Travel and vehicle expenses
Training expenditure
Protective clothing		 2024
£
960,895
259,703
1,220,598
1,231,187
8,967
2,460,752
2,460,752
2,460,752
2024
£
72,383
-
18,239
169,081
-
259,703		 2023
£
825,299
427,715
1,253,014
1,395,509
8,711
2,657,234
2,657,234
2,657,234
2023
£
87,187
576
20,888
317,080
1,984
427,715

7 Direct costs

MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

8
Support costs allocated to activities
Staff costs
Depreciation
Support costs
Governance costs
Analysed between:
Support costs
9
Support costs
Professional fees
Travel and entertaining
Staff training and refreshments
Telephone
Postage, stationery and advertising
Exchange difference
Sundries
Disallowed VAT inputs
Bank charges
Rent and rates
Insurance
Light and heat
Repairs and renewals
Property refurbishments
Cleaning		 2024
£
625,117
35,221
570,849
8,967
1,240,154
1,240,154
2024
£
17,157
28,072
3,247
8,557
78,835
5,091
26,098
68,647
3,940
151,324
23,036
68,221
24,104
8,991
55,529
570,849		 2023
£
523,202
16,170
856,137
8,711
1,404,220
1,404,220
2023
£
20,169
59,511
11,743
10,082
62,366
-
32,116
75,618
4,069
268,660
12,082
63,594
9,007
177,596
49,524
856,137

10 Trustee remuneration and benefits

No trustees received remuneration or other benefits for the year ended 31 July 2024 or 31 July 2023.

Responsibility allowances for the year of £2,753 (2023: £2,619) were paid to seven trustees (2023: six).

MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

11 Employees

Number of employees

The average monthly number of employees during the year was:

Direct charitable
Administration
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2024
Number
33
13
46
2024
£
1,347,946
121,147
116,919
1,586,012		 2023
Number
30
13
43
2023
£
1,119,905
105,634
122,962
1,348,501

The number of employees whose annual remuneration was £60,000 or more were:

were:
2024 2023
Number Number
£60,001- £70,000 2 -
£100,001- £110,000 1 1

Total pension contributions paid on behalf of the above members of staff were £23,462 (2023: £17,569).

12 Other material expenditure

During the year, the charity purchased freehold land and buildings for a cost of £780,000. On 30 May 2023, the charity instructed SMC Brownill Vickers Chartered Surveyors to carry out a valuation on the property. The valuation concluded the market value of the property to be £625,000. As a result, the freehold land and buildings have been impaired within the financial statements by £155,000.

13 Taxation

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

14 Tangible fixed assets

Freehold land
and building
Equipment,
computers and
vehicles
£
£
Cost
At 1 August 2023
-
566,464
Additions
780,000
67,128
Disposals
-
(11,750)
At 31 July 2024
780,000
621,842
Depreciation and impairment
At 1 August 2023
-
523,211
Depreciation charged in the year
9,000
26,221
Impairment losses
155,000
-
Eliminated in respect of disposals
-
(11,750)
At 31 July 2024
164,000
537,682
Carrying amount
At 31 July 2024
616,000
84,160
At 31 July 2023
-
43,253		 Total
£
566,464
847,128
(11,750)
1,401,842
523,211
35,221
155,000
(11,750)
701,682
700,160
43,253

More information on the impairment arising in the year is given in note 12.

15 Fixed asset investments

Unlisted
investments
£
Cost or valuation
At 1 August 2023 & 31 July 2024 2
Carrying amount
At 31 July 2024 2
At 31 July 2023 2

16 Subsidiaries

Details of the charity's subsidiaries at 31 July 2024 are as follows:

Name of undertaking Registered Nature of business Class of % Held
office shares held Direct
C K W Academy Limited England Dormant company Ordinary 100.00
Morthyng Limited England Dormant company Ordinary 100.00

MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

17 Debtors

Amounts falling due within one year:
Trade debtors
Prepayments and accrued income		 2024
£
214,381
51,292
265,673		 2023
£
253,639
69,341
322,980

18 Creditors: amounts falling due within one year

Notes
Trade creditors
Other taxation and social security
Deferred income
19
Other creditors
Accruals		 2024
2023
as restated
£
£*
29,435
76,253
30,195
44,904
547,521
590,001
5,874
7,412
219,946
199,117
832,971
917,687		 2024
2023
as restated
£
£*
29,435
76,253
30,195
44,904
547,521
590,001
5,874
7,412
219,946
199,117
832,971
917,687
917,687

*Included in the prior year accruals balance was a dilapidations provision of £144,612. This has been restated to be reflected within provisions for liabilities. Also included within accruals was a balance of £104,522 for unspent LLDD funds. This has been restated to be reflected within deferred income. The amounts reported within the 2023 financial statements for accruals and deferred income were £448,251 and £485,479 respectively.

19 Deferred income

Deferred income
Other deferred income
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Movements in the year:		 2024
£
547,521
2024
£
547,521		 2023
£
590,001
2023
£
590,001

MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

19 Deferred income (Continued)
Deferred income at 1 August 2023 590,001 351,683
Released from previous periods (138,678) (176,898)
Resources deferred in the year 96,198 415,216
Deferred income at 31 July 2024 547,521 590,001

*Included in accruals in the prior year was a balance of £104,522 for unspent LLDD funds. This has been restated to be reflected within deferred income. The amount reported within the 2023 financial statements for deferred income was £485,479.

Unspent Erasmus and Turing contract amounts to £128,671 (2023: £135,039).

£58,268 relates to LLDD restricted funds (2023: £104,552). This relates to funding that the council could claw back due to students not completing the course.

£222,019 relates to the element of the ESFA contract that has not been fulfilled in the 2023/2024 period, (2023: £242,598).

£138,563 relates to the restricted bursary fund (2023: £107,842). This fund relates to student expenditure and is a pot which can be drawn down if student expenditure is higher than what has been funded for the year.

20
Provisions for liabilities
Dilapidations provision
Movements on provisions:
At 1 August 2023 and 31 July 2024		 2024
2023
as restated
£
£
144,612
144,612
Dilapidations
provision
£*
144,612

*Included in the prior year accruals balance was a dilapidations provision of £144,612. This has been restated to be reflected within the above provisions for liabilities. The amounts reported within the 2023 financial statements for provisions for liabilities was £nil.

Dilapidations provision

The dilapidations provision relates to the 7-9 Canklow Road property which is currently being used as an educational construction centre. The provision is expected to be settled after more than 12 months from the reporting date.

21 Share capital

The charity is registered as a company limited by guarantee and has no share capital. Each member is a guarantor for a maximum of £10.

MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2024

22
Analysis of net assets between funds
Fund balances at 31 July 2024 are represented by:
Tangible assets
Investments
Net current assets
Provisions
23
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Gain on disposal of tangible fixed assets
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease/(increase) in debtors
(Decrease) in creditors
(Decrease) in provisions
(Decrease)/increase in deferred income
Cash generated from operations		 2024
£
599,786
(79,391)
(8,660)
190,221
57,307
(42,236)
-
(42,480)
674,547		 Total
£
700,160
2
2,726,028
(144,612)
3,281,578
2023
£
608,358
(26,584)
-
16,170
(72,908)
(2,357)
144,612
238,318
905,609

MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024

24 Operating lease commitments

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

Within one year
Between two and five years		 2024
£
112,540
65,708
178,248		 2023
£
184,604
89,584
274,188

25 Retirement benefit schemes

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 cost in respect of defined contribution schemes was £116,919 (2023: £122,962).

26 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

During the year an interest free loan of £4,000 was made to C MacCormac MBE (CEO). This was repaid in full prior to the year end.

On 21 July 2023, Morthyng Group Limited entered into an agreement with Mulldurk Solutions Limited to provide technical consultancy and management support for European projects. Mulldurk Solutions Limited is jointly owned by the CEO and Group Director of Operations of Morthyng Group Limited. This agreement was approved by Trustees for services up to the value of £50,000. Morthyng Group Limited paid £46,500 during the year (2023: £41,000) in respect of these services. Balances outstanding to Mulldurk Solutions Limited at the year end are £nil (2023: £nil).