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← Morthyng Limited

2025-07-31-accounts

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Charity registration number 1000381 (England and Wales)

Company registration number 02283391

MORTHYNG GROUP LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2025

MORTHYNG GROUP LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees P Clements C Haywood J Irving A Corbridge M Broxholme AF Featherstone S Marsh 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 $9 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 $60 2EN Senior Leadership Team C Ellis (Deputy Chief Executive) M MacCormac (Chief Executive)

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MORTHYNG GROUP LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Operational addresses

7-9 Canklow Road Rotherham $60 2UB

52-54 Hamilton Street Birkenhead Wirral CH41 5AE

North Grove House South Grove Rotherham S60 2AF

Suites 3, 4,5 and6 First Floor Stuart House 71 Elizabeth Street Corby NN17 1SE

75-77 Sankey Street Warrington WA1 1SL

Rugby Town FC Butlin Road Rugby CV21 3SD ,

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MORTHYNG GROUP LIMITED

CONTENTS

Page

Trustees’ report

Statement of trustees' responsibilities

Independent auditor's report

Statement of financial activities

Balance sheet Statement of cash flows Notes to the financial statements

1-4 5 6-8 9 10 11 12 - 24

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MORTHYNG GROUP LIMITED TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2025

The trustees present their annual report and financial statements for the year ended 31 July 2025.

The financial statements have been prepared in accordance with the accounting policies set aut 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 2024/25 year, a full review of the business was undertaken and our succession plan was fully implemented with changes to senior leadership aimed at solidifying the company’s position as we move forward into the next 5 years.

Study Programmes occupancy remained buoyant from August to July and numbers increased to meet contracted volume.

Our in-house Football Academy Study Programme in Rugby as well as provision in Rotherham and Warrington, continue to expand. We have increased our volume of sub-contracting this year, however this is still a small proportion of our output. We don't intend to increase this any further in the future unless we meet the DfE subcontracting standard.

Achievement rates showed improved results again in 2024/25, due to higher volumes taking the GCSE's. Maths GCSE's grade 4 to 9 was higher than national average. 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 slowed to that of 2023/24, month on month during the year. This was due to demand on the local authorities to process and the lack of funding they had to support.

In 2024/25, learners were still negatively affected by Covid-19, more due to the impact on some learner's mental well-being and attendance rates and antisocial behaviour.

Learneroutcomes Target Actual
ESFA
Study Programme Progressions 76.0% 75.0%
Functional Skills Maths & English 78.0% 83.0%
GCSE Maths & English grades 1-9 97.0% 100.0%
GCSE Maths & English grades 4-9 25.0% 30.0%
AltAims 90.0% 89.0%
CoreAims 82.0% 79.0%
WorkRelated 85.0% 85.0%

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MORTHYNG GROUP LIMITED

TRUSTEES’ REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2025

Volumes: Starts
ESFAStudy ProgrammeAll Regions 422
ESFALLDD All Regions 53
Total 475

Financial review

Reserves policy

The Board and trustees approved the reserves policy for the 2024/2025 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 2025 were £3,461,171. The reserves policy will be reviewed and agreed at the Annual General Meeting in November 2025 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 resérves 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 9.

The financial standing of the charity is stable.

Future developments

In the 2025/26 year, we are expecting another improved picture with the growth of vocational options available to our students. We will continue to respond to the focal needs of our operational areas and position and resource ourselves accordingly to meet those needs, in line with our charitable ethos.

Our High Needs volumes, are expected to improve In 2025/26 and again In 2026/27 but not as fast and at a lower unit value, 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 2025 and we expect this to continue in the 2025/26 year. Improvements were made in Functional Skills Maths and English, with attainment levels meeting our targets for 2024/25. Morthyng is in the best operational and financial position since 2006. From 2021/22 we have invested in improving. staff salarles and conditions. The purchase of our Rotherham Head office complex, was made in October of 2023. New premises for Corby and Birkenhead is under review for 2025/26 year.

Succession plans for the retirement of the previous CEO have now been fully implemented with increased middle management posts to prevent any hiatus in the ethos and delivery style of the company.

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MORTHYNG GROUP LIMITED

TRUSTEES’ REPORT (CONTINUED)(INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 JULY 2025

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 2025/2026 and 2026/27 and 2027/28 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 seven 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 12 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.

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

P Clements

J Wheatley (Resigned 20 November 2024) C Haywood J Irving A Corbridge M Broxholme AF Featherstone S Marsh

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. She is supported in these duties by the Deputy Chief Executive. The charity currently has 49 employees delivering training and education across Yorkshire and the Humber, North West and in Europe.

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MORTHYNG GROUP LIMITED

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2025

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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.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

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

M Broxholme Chair of the Board Dated: 19 November 2025

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MORTHYNG GROUP LIMITED

STATEMENT OF TRUSTEES’ RESPONSIBILITIES FOR THE YEAR ENDED 31 JULY 2025

The trustees (who are also. the directors of Morthyng Group Limited for the purposes of company law) are responsible for preparing the Trustees' Annual Report 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. Under company law the trustees must not approve the financial statements unless they are satisfied that they 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 these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate 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.

In so far as the trustees are aware:

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

Opinion

We have audited the financial statements of Morthyng Group Limited (the ‘charity’) for the year ended 31 July 2025 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:

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 concer for a period of at least twelve months from when the financial statements are authorised for issue,

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our inconsistentresponsibilityis to read the other information and, in doing so, consider whether the other information is materially to with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this. gives rise to a material misstatement in the financial statements. themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other Information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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MORTHYNG GROUP LIMITED

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being Satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concem, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but todo so.

Auditor's responsibilities for the audit of the financial statements

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 disclosurés 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:

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

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:

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 expectedmisrepresentations etc. We are not responsible for preventing non-compliance or fraudand therefore cannot be that to detect all instances of such. Our audit was not-designed to identify misstateménts or other irregularities lawswould not be considered to be material to the financial statements. The further removed non-compliance with 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.fre.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members 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, Statutory Auditor Chartered Accountants Europa Link Sheffield Business Park Sheffield S9 1XU

19 November 2025

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MORTHYNG GROUP LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JULY 2025

Unrestricted Unrestricted
funds funds
2025 2024
Notes £ £
Income and endowments from:
Charitable activities 3 3,038,357 3,127,487
Investments 4 90,715 79,391
Otherincome 5 - 8,660
Total Income 3,129,072 3,215,538
Expenditure on:
Charitable activities 6 2,873,943 2,460,752
Other material expenditure 13 75,536 155,000
Total expenditure 2,949,479 2,615,752
Net income and movement in funds 179,593 599,786
Reconciliation of funds:
Fund balances at 1 August 2024 3,281,578 2,681,792
Fundbalancesat31July2025 3,461,171 3,281,578

All income and expenditure derive from continuing activities.

The statement of financial activities includes all gains and losses recognised in the year.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

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MORTHYNG GROUP LIMITED

BALANCE SHEET

AS AT 31 JULY 2025 Se Tee eee nee ee

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ee
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2025 2024
Notes £ £ £ £
Fixed assets
Tangible assets 15 687,383 700,160
Investments 16 2 2
Current assets 667,385 700,162
Debtors 19 145,856 265,673
Cash atbank and in hand 3,887,624 3,293,326
4,033,480 3,558,999
Creditors: amounts falling duewithin 20
one year (1,095,082) (832,971)
Netcurrentassets 2,938,398 2,726,028
Total assets less current liabilities 3,605,783 3,426,190
Provisionforother liabilities 21 (144,612) (144,612)
Netassets 3,461,171 3,281,578
The funds ofthe charity
Unrestricted funds 3,461,171 3,281,578
3,461,171 3,281,578

The financial statements were approved by the trustees on 19 November 2025

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M Broxholme ae ~
Trustee
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Company registration number 02283391 (England and Wales)

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MORTHYNG GROUP LIMITED

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2025

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||||||||| |---|---|---|---|---|---|---|---| |2025|2024| |Notes|£|£|£|£| |Cash|flows from|operating|activities| |Cash|generated|from|operations|24|512,154|674,547| |Investing|activities| |Purchase|of tangible|fixed|assets|(8,571)|(847,128)| |Proceeds from|disposal|of tangible|fixed| |assets|-|8,660| |Investment|income|received|90,715|79,391| |Net|cash|generated from/(used|in)|investing| |activities|82,144|(759,077)| |Net|cash|generated|from|financing|activities|-|:| |Net|increase/(decrease)|In|cash|and|cash| |equivalents|594,298|(84,530)| |Cash|and|cash|equivalents|at beginning|of year|3,293,326|3,377,856| |Cash|and|cash|equivalents|at end|of year|3,887,624|3,293,326|

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MORTHYNG GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025

Charity Information

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

1.1. Basis of preparation The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland” and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in-accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

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

1.2 Going concern Athasthe time of approvingthe financial statements, the trustees have a reasonable expectation that the charity 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 are available for use at the discretion of the trustees in furtherance of their charitable objectives.

1.4 Income 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 Expenditure 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.

1.6 Tangible fixed assets

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

eg.

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MORTHYNG GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

ee__" 1 Accounting policies (Continued) 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:

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 nat 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.revisedWherean impairment loss subsequently reverses, the carrying amount of the asset is increased to the carrying estimate of its recoverable amount, but so that the increased carrying amount does not exceed the prior amount that would have been determined had no impairment loss been recognised for the asset in at years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in 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.

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.

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MORTHYNG GROUP LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025 ey 1 Accounting policies (Continued)

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 subsequeritly 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 thevaluearrangement constitutesa financing transaction, where the debt instrument is measured at the present within of theone yearfutureare paymentsnot amortised.discounted at a market rate of interest. Financial liabilities classified as payable

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 abilities 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 methad.

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 asa finance cast in net income/(expenditure) in the period in which it arises,

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

1.14 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 intereston the remaining balance of the lability.

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MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

1 Accounting policies

(Continued)

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.

1.15 Foreign exchange

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.

Critical judgements

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 prior 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 were 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. This year, the trustees do not consider there to be any indicators of impairment.

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.

3 Income from charltable activities

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Grants and contracts for training 3,038,357 3,127,487

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MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

4 Income from Investments

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Interest receivable 90,715 79,394
5 Otherincome
Unrestricted Unrestricted
funds funds
2025 2024
£ £
Netgain on disposal oftangible fixed assets - 8,660
6 Expenditure on charitabie activities
2025 2024
£ £
Staffcosts 1,178,663 960,895
Direct costs 327,921 259,703
1,506,584 1,220,598
Supportcosts
Governance costs		 1,355,247
12,112		 1,231,187
8,967
2,873,943 2,460,752
Unrestrictedfunds 2,873,943 2,460,752
7 Direct costs
2025 2024
£ £
Learner travel expense
Traveland vehicleexpenses
Training expenditure		 87,161
15,698
225,062		 72,383
18,239
169,081
327,921 259,703

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MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2025

a

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|||||||||| |---|---|---|---|---|---|---|---|---| |8Support costs|allocated|to|activities| |2025|2024| |£|£| |Staff costs|639,532|625,117| |Depreciation|41,348|35,221| |Support|costs|674,367|570,849| |Governance|costs|12,112|8,967| |1,367,359|1,240,154| |9|Support|costs| |2025|2024| |£|£| |Professional fees|9,897|17,157| |Travel|and|entertaining|47,457|28,072| |Staff training|and|refreshments|5,937|3,247| |Telephone|9,051|8,557| |Postage,|stationery|and|advertising|84,762|78,835| |Exchange difference|-|5,091| |Sundries|29,883|26,098| |Disallowed VAT|inputs|67,770|68,647| |Bank charges|4,445|3,940| |Rent and|rates|203,719|151,324| |Insurance|28,722|23,036| |Light and|heat|58,089|68,221| |Repairs|and|renewals|32,026|24,104| |Property|refurbishments|29,028|8,991| |Cleaning|63,581|55,529| |674,367|570,849| |10|Net movement|in funds|2025|2024| |£|£| |The|net movement|in|funds|is|stated|after charging/(crediting):| |Fees|payable|to|the|charity's|auditor:| |~|for the|audit|of the|charity's|financial|statements|7,760|7,320| |-|for other assurance|services|2,600|-| |-|for other financial|services|1,500|1,500| |Depreciation|of owned|tangible|fixed|assets|41,348|35,221| |Impairment of owned|tangible|fixed|assets|-|155,000| |Loss/(profit)|on|disposal|of tangible|fixed|assets|-|(8,660)|

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MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

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11. Employees

The average monthly number of employees during the year was:

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|||||| |---|---|---|---|---| |2025|2024| |Number|Number| |Direct|charitable|36|33| |Administration|13|13| |Total|49|46| |Employment|costs|2025|2024| |£|£| |Wages|and|salaries|1,536,321|1,347,946| |Social|security costs|179,712|121,147| |Other|pension|costs|177,698|116,919| |1,893,731|1,586,012|

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The number of employees whose annual remuneration was more than £60,000 is as follows:

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||||| |---|---|---|---| |2025|2024| |Number|Number| |£60,001-|£70,000|-|2| |£70,001|- £80,000|2|-| |£100,001|- £110,000|-|1| |£160,001|- £170,000|1|-|

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Total pension contributions paid on behalf of the above members of staff were £58,365 (2024: £63,462).

Remuneration of key management personnel

The remuneration of key management personnel was as follows:

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||||| |---|---|---|---| |2025|2024| |£|£| |Aggregate|compensation|349,778|298,078| |12|Trustees|

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No trustees received remuneration or other benefits for the year ended 31 July 2025 or 34 July 2024.

Responsibility allowances for the year of £3,480 (2024: £2,753) were paid to six trustees (2024: seven).

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MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

13 Other material expenditure

Ex-gratia payment

During the year, a payment of £75,536 was made to a member of key management personnel to terminate their employment contract.

Impairment of fixed assets

During the prior year, the charity purchased freehold fand 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 were impaired within the financial statements by £155,000.

14 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.

15 Tangible fixed assets

Tangible fixed assets
Freehold land
and building		 Equipment,
computers and		 Total
vehicles
£ £ £
Cost
At 1 August 2024
Additions
Disposals		 780,000
-
-		 621,842
8,571
(127,835)		 1,401,842
8,571
(127,835)
At 31 July2025 780,000 502,578 1,282,578
Depreciation and impairment
At 1 August2024 164,000 537,682 701,682
Depreciation charged in the year 12,000 29,348 41,348
Eliminated in respect ofdisposals - (127,835) (127,835)
At 31 July2025 176,000 439,195 615,195
Carrying amount
At 31 July2025 604,000 63,383 667,383
At31July2024 616,000 84,160 700,160

More information on the impairment arising in the year is given in note 13.

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MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

16 Fixed asset investments

Unlisted
investments
£
Cost or valuation
At 1 August 2024 & 31 July 2025 2
Carrying amount
At 31 July2025 2
At31July2024 2

17 Subsidiaries

Details of the charity's subsidiaries at 31 July 2025 are as follows:

Nameofundertaking Registered Nature ofbusiness Class of % Held
office shares held Direct
CKWAcademy Limited England Dormantcompany Ordinary 100
Morthyng Limited England Dormantcompany Ordinary 100
18 Deferred income
2025 2024
£ £
Otherdeferred income 825,846 547,521
Deferred income is included in the financial statements as follows:
2025 2024
£ £
Deferred income is included within:
Current liabilities 825,846 547,521
Movements in the year:
Deferred income at 1 August2024 547,521 590,001
Releasedfrom previous periods
Resources deferred in theyear		 (71,039)
349,364		 (138,678)
96,198
Deferredincomeat31July2025 825,846 547,521

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MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

18 Deferred income

(Continued)

Unspent Erasmus and Turing contract amounts to £119,817 (2024: £128,671).

£76,810 relates to LLDD restricted funds (2024: £58,268). 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, (2024: £222,019).

£185,243 relates to the restricted bursary fund (2024: £138,563). 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.

£221,957 relates to the DfE study programme fund (2024: £nil). This relates to funding received in order to deliver the education of learners.

19 Debtors

Debtors
2025 2024
Amounts falling due within one year: £ £
Trade debtors 97,187 214,381
Prepayments and accrued income 48,669 51,292
145,856 265,673
Creditors: amounts falling due within one year
2025 2024
Notes £ £
Othertaxation and social security 35,472 30,195
Deferred income 18 825,846 547,521
Trade creditors 43,100 29,435
Other creditors 8,278 5,874
Accruals 182,386 219,946
1,095,082 832,971

20 Creditors: amounts falling due within one year

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MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

21 ~Provisions for liabilities 2025 2024
£ £
Dilapidations provision 144,612 144,612
Movementsonprovisions:

Dilapidations provision £ At 1 August 2024 and 31 July 2025 144,612

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.

22 Related party transactions

Transactions with related parties

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

A donation of £520 (2024: Enil) was made to a charity in which a member of key management personnel is a trustee. A close family member of key management personnel is employed by Morthyng Group Limited. Total remuneration and employer pension contributions paid in respect of this individual was £34,615 (2024: £29,740).

Chris MacCormac, spouse of Moira MacCormac, resigned as CEO effective from 31 January 2025. After this date, he was re-employed by Morthyng Group Limited. Total remuneration and employer pension contributions paid to Chris MacCormac after this date was £31,350.

Morthyng Group Limited entered into an agreement with Mulldurk Solutions Limited to. provide technical consultancy and management support.for European projects. Mulldurk Solutions Limited was. jointly owned by twoin membersof key management personnel. in the prior year, £46,500 was paid to Mulldurk Solutions Limited respect of these services with a balance of £nil being outstanding at the prior year end, This year, no such transactions took place.

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MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

23 ~=Analysis of net assets between funds

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||||||||| |---|---|---|---|---|---|---|---| |Unrestricted| |funds| |2025| |£| |At|31|July|2025:| |Tangible|assets|667,383| |Investments|2| |Current|assets/(liabilities)|2,938,398| |Provisions|(144,612)| |3,461,171| |Unrestricted| |funds| |2024| |£| |At|31|July|2024:| |Tangible|assets|700,160| |Investments|2| |Current|assets/(liabilities)|2,726,028| |Provisions|(144,612)| |3,281,578| |24|Cash|generated|from|operations|2025|2024| |£|£| |Surplus|for the|year|179,593|599,786| |Adjustments|for:| |Investment income|recognised|in|statement|of financial|activities|(90,715)|(79,391)| |Gain|on|disposal|of tangible|fixed|assets|-|(8,660)| |Depreciation|and|impairment|of tangible|fixed|assets|41,348|190,221| |Movements|In|working|capital:| |Decrease|in|debtors|119,817|57,307| |(Decrease)|in|creditors|(16,214)|(42,236)| |Increase/(decrease)|in|deferred|income|278,325|(42,480)| |Cash|generated from|operations|512,154|674,547|

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MORTHYNG GROUP LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025

25 Operating lease commitments

Lessee

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:

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|||||||||| |---|---|---|---|---|---|---|---|---| |2025|2024| |£|£| |Within one year|108,900|112,540| |Between|two and|five|years|26,533|65,708| |135,433|178,248| |26|Retirement|benefit|schemes| |2025|2024| |Defined|contribution|schemes|£|£| |Charge|to|profit or loss|in|respect of defined|contribution|schemes|177,698|116,919|

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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.

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