2025-03-31-accounts

Company No: 02535199 Charity No: 1001586

WORLDSKILLS UK

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

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CONTENTS	Page
Annual Report of the Trustees incorporating the Strategic Report	2 to 13
Independent Auditor’s Report	14 to 18
Statement of Financial Activities	19
Balance Sheet	20
Statement of Cashflows	21
Notes to the Financial Statements	22 to 33

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The Board of Trustees of WorldSkills UK (“the Charity”) presents its annual report incorporating the strategic report for the year ended 31 March 2025 together with the audited financial statements for that year, under the Companies Act 2006, the Charities Act 2011, FRS 102 (effective 1 January 2019) and applicable accounting standards.

Reference and administrative details

WorldSkills UK is a registered charity (No. 1001586) and a company (No. 02535199) limited by membership guarantees. Its registered office is as shown on pages 12-13.

The present Trustees (who are also the Directors), and any past Trustees who served during the year, are shown on page 12 and 13, together with the names of the senior executive staff. The external advisers of the Charity are also set out on page 13.

Structure, Governance and Management

The Charity is governed by its Articles of Association adopted on 29 August 1990 and last amended by a special resolution passed on 14 February 2019.

The Board of Trustees is responsible for the overall governance of the Charity. Trustees are elected by the Board after a procedure involving their proposal by a member, or members of the Board and a formal interview. The total number of Trustees may not exceed 13, or such other maximum number as the Trustees decide which is currently

1. Trustees may only remain in office for eight consecutive years (two terms of office of four years) unless the Board of Trustees resolves that they may remain for a further period.

Qualifying third party indemnity provision is in place for the benefit of all Trustees of the charity.

The Board delegates the exercise of certain powers in connection with the management and administration of the Charity as set out below. This is controlled by requiring regular reporting back to the Board, so that all decisions made under delegated powers can be ratified by the full Board in due course.

The Skills Show Ltd which is a fully owned subsidiary of WorldSkills UK has remained dormant throughout the year and has not traded in 2023/24.

In June 2023, the Board confirmed a new sub-committee structure merging the Finance and General Purposes Committee with the Audit Committee and merging the Remuneration Committee with the Governance Committee to create the committees as set out below.

Finance, Audit and Risk Committee

The role of the Finance Audit and Risk Committee is to advise the WorldSkills UK Board on matters of financial management, accountability, corporate services, risk assessment, risk management, and internal control. The Committee comprises Trustees, independent co-opted members (not Trustees) and other advisers who are independent of the management and free of any relationship that in the opinion of the

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Board of Trustees would conflict with the exercise of independent judgement as members of the Committee. The Committee meets at least quarterly.

People, Culture and Governance Committee

The role of the People, Culture and Governance Committee is to ensure WorldSkills UK provides an excellent and safe working environment for its employees through robust and effective people management. The Committee establishes a formal and transparent procedure for developing policy on remuneration across the staff team and specifically set the remuneration packages for members of the Senior Leadership Team (excluding the Chief Executive whose remuneration is determined by the Board) and where appropriate members of the Board. The Committee oversees Board membership and succession planning and reviews WorldSkills UK’s governance structures and processes to ensure all requirements for company and charity governance are met and that the Board has the right mix of skills and experience to advance WorldSkills UK’s mission and strategy.

Trustees’ induction and training

New Trustees receive a copy of the WorldSkills UK Trustee Induction pack which includes information on their legal obligations under charity and company law, a Trustee job description, information about the charity and a copy of the Articles of Association. They also have one-to-one briefings with the Chair, Deputy Chair, Chief Executive and Company Secretary where they receive information about the decisionmaking processes, Board structure, and receive a copy of the WorldSkills UK forward strategy. Trustees are able to attend external training events appropriate to their roles. During the year, the charity provided indemnity insurance for its Trustees.

Statement of Trustees’ responsibilities

The Trustees (who are also Directors of WorldSkills UK for the purpose of company law) are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Policies).

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 income and expenditure of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently

• observe the methods and principles in the Charities SORP

• make judgments and accounting estimates that are reasonable and prudent

• state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

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

So far as the Trustees are aware:

• there is no relevant audit information of which the Charity’s auditors are unaware

• the Trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the Charity's auditors are aware of that information.

Corporate governance

The system of internal control is designed to manage risk to a reasonable level rather than eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of control is based on an ongoing process designed to:

• identify and prioritise the risks related to the achievement of policies, aims and objectives

• evaluate the likelihood of those risks being realised and the impact should they be realised

• manage them efficiently, effectively and economically.

The Trustees review the effectiveness of internal control. This comprises:

• review by the Finance, Audit and Risk Committee and the Board of the strategy and Annual Budget

• review by the Finance, Audit and Risk Committee and the Board of the monthly management accounts

• review of the appropriateness of processes and procedures by the Finance, Audit and Risk Committee

• review by the Finance, Audit and Risk Committee and the Board of delivery activity across operational areas

• advice on financial control by the Finance, Audit and Risk Committee

• review and action resulting from comments by the external auditors in their management letter

• review and action resulting from comments of internal audit work.

WorldSkills UK does not have an in-house internal audit function at present. However, internal audit work may be commissioned in specific areas after undertaking a comprehensive risk assessment and value for money exercise.

Risk management

Since 2023, leadership on risk management issues has rested with the Board and the Finance, Audit and Risk Committee. Both are able to draw on the additional expertise of non-executive members with experience of the private and not for profit sectors. The

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Finance, Audit and Risk Committee acts in an advisory and overview capacity, taking a financial and management lens. At its quarterly meetings, it reviews the risk register as a standing agenda item and reports to the Board. The People, Culture and Governance Committee advises the Board on risks and issues relating to organisational development and staffing matters in particular. The Board receives and comments on the risk register at each of its meetings.

At a strategic level, management of risk is embedded in the planning and performance reporting processes of the organisation. Each major work programme is assessed for risk at its outset and risks are then reviewed and reported monthly as part of the organisation’s project management process. The Senior Leadership Team (SLT) considers an overview of these project level risks monthly and assesses this against the corporate level strategic risk register.

The charity faced a number of principal risks and uncertainties:

WorldSkills UK’s grant relationship with the Department for Education (DfE) means its strategic direction and funding are closely linked with the policies and decisions of the DfE. The general election in July 2024 presented a number of risks and opportunities. These related, in particular, to the importance of demonstrating WorldSkills UK’s contribution to the Government’s agenda, refining programmes to align well with the Government’s emerging strategies, fully meeting grant requirements, and developing strong relationships with the new ministerial team and others in Government circles. It remained critical for WorldSkills UK to continue to build its relations with teams across the Department and maintain its focus on evidencing impact and value to the public purse.

Given that the grant value in 2024-25 was the same as 2023-24, this was a reduction in real terms. This steady reduction, at a time of significant pressure on public funding and ongoing inflation, called for careful management by the SLT throughout the year. There was a focus on increasing commercial income, growing delivery, including digital programmes, making efficiencies where possible and maximising achievement on KPIs.

2024-25 was the final year of WorldSkills UK’s two-year grant, following an open competitive tendering process run by the DfE. There is facility in the grant to extend it by up to two years from 2025-26, though without the guarantee of the same funding rate. Late in 2024-25, the DfE notified WorldSkills UK that it would extend the grant by one year with a 15% reduction in funding and would review its procurement the WorldSkills UK programme for 2026-27 and beyond during the year. This situation presented challenges of managing the reduced budget alongside uncertainties regarding future grant and delivery arrangements. The DfE recognised that the funding situation did not reflect the success of WorldSkills UK in 2024-25 and acknowledged its strong performance.

Effectively aligning strategies and programmes with the differing policy and funding objectives of all four UK nations is a continuing challenge that WorldSkills UK seeks to manage by maintaining robust relationships with the governments, stakeholders and elected representatives in each UK nation. Activity levels in the devolved nations are, overall, high and the nations play an extremely valuable role in the performance of

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WorldSkills UK, alongside each making a financial contribution to core funding of WorldSkills UK. WorldSkills UK endeavours to ensure its actions align with UK’s and devolved nations’ policy positions and provide a strong return on their investment.

Overall, despite funding pressures and new Government strategies, WorldSkills UK’s risk position improved through much of 2024-25, supported by strong relations with governments across the UK and high performance on programme delivery. This position decreased at the end of the year in the light of the funding reduction for 202526, though WorldSkills UK is positively managing the changes. It has a sound programme base that performs highly and with increasing impact, good relations with funders and partners and a skilled and experienced organisation. This means WorldSkills UK remains well able to make a major contribution to raising standards in technical education and to better meeting priority skills needs across the UK, and to use its unique global platform and partnerships to leverage engagement.

Principal activities

Introduction

2024-25 has been an impressive year of achievement for WorldSkills UK, continuing to work with partners in UK governments, industry and education to embed world-class skills across the UK.

WorldSkills UKs impacts have been recognised against its three core aims:

• raising standards through international benchmarking

• championing future skills through analysis of rapidly changing economic demand

• empowering young people, from all backgrounds through competitions-based training.

Across its programmes, WorldSkills UK worked closely with partners in England, Scotland, Wales and Northern Ireland; employers and businesses; educational organisations and sector bodies, recognising that these partnerships are vital to achieving the goal of building a world-class skills system across the UK.

Achievements and outcomes

In 2024-25, WorldSkills UK delivered measurable and wide-reaching impact across its national and international programmes. Through strategic partnerships, innovative initiatives, and a commitment to excellence, WorldSkills UK has continued to raise the standard of technical education and apprenticeships across the UK. This report outlines the key achievements and outcomes that demonstrate the value of investment in WorldSkills UK’s work.

WorldSkills UK’s reach and impact in 2024-25 was significant, institutional engagement included 187 General Further Education colleges, 118 Independent Training Providers, and 49 Higher Education Institutions, including 27 members of Institutes of Technology. Over 8,400 educators participated across all WorldSkills UK CPD activities, with 92% reporting that training has enhanced their teaching, understanding or delivery. A further 2,561 educators accessed the WorldSkills UK Learning Laboratory, and 91% agreed that competition-based resources positively impacted the quality of their

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delivery, training, and assessment. More than 165,000 learners benefitted either through CPD-informed teaching or direct WorldSkills UK activities such as benchmarking, competitions, and masterclasses. A total of 12,330 young people were benchmarked against national and international standards, including 5,242 through local endorsed competitions and 1,500 via Centre of Excellence pressure testing. Over 3,600 young people participated in the National Competition Cycle, with 89% reporting improved technical skills and 91% applying those skills in education, work, or other areas of life. Notably, participation from ethnically diverse backgrounds rose to 19%, up from 13% in 2023.

The Centre of Excellence, delivered in partnership with NCFE and with support from The Creation Education Trust, Symetri Ltd and Arkance continued to drive systemic change in technical education. In 2024-25, 5,500 educators engaged with the Centre of Excellence programme, contributing to a total reach of over 250,000 learners since its launch. The programme expanded its use of pressure testing, embedded competitionbased learning into curricula, and deepened engagement through the Learning Laboratory. The Centre of Excellence is also supported by the DfE, Autodesk, and the Manufacturing Technology Centre.

Team UK achieved a top ten finish at WorldSkills Lyon 2024, competing against 69 countries. Representing the UK across 27 skills, 31 competitors secured three silver medals, one bronze, and 12 Medallions for Excellence. The UK’s average score of 707.44 exceeded the international standard of excellence, and 32% of Squad UK were female, reflecting progress in gender representation. Over 50 employers and stakeholders attended the competition, including senior government officials, to observe world-class skills in action and share best practice. This performance reflects the strength of the UK’s technical education system and the collaborative efforts of WorldSkills UK, employers, educators, and governments across all four nations.

The 2024 National Finals, held in Greater Manchester, brought together 402 young people from 128 organisations to compete in 46 disciplines, including foundation and demonstration competitions. The event attracted high-profile visitors including the Skills Minister, the Mayor of Greater Manchester, and international delegates. It showcased the prestige of technical skills and the role of competition-based learning in raising standards and inspiring ambition.

A major development in 2024 was the launch of the Local Skills Competition Endorsement Framework. This initiative embedded competition-based learning at a grassroots level, with 52 institutions endorsed to run 137 local competitions, benchmarking over 5,200 learners. A landmark inter-college competition in London demonstrated the framework’s potential to address regional skills gaps and strengthen employer engagement.

WorldSkills UK also provided over 48,000 young people with meaningful engagements though careers information and resources promoting technical and apprenticeship pathways. Of those engaged, 83% reported improved understanding of post-secondary technical and vocational options, exceeding the target of 75%. The organisation’s work was further supported by 128 Skills Champions who volunteered 607 hours, and media

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coverage reached a circulation of over 642 million, including 24 pieces of national coverage.

Throughout the year, WorldSkills UK hosted and participated in a series of high-impact events. These included the International Skills Summit in May, and the publication of the Skills for Success in the Screen Industries report in June. In July, 12 innovation projects were announced under the Centre of Excellence. August and September saw final preparations and a medal-winning performance at WorldSkills Lyon. Celebrations of Team UK’s achievements took place across the UK and in Parliament from October to December. In January, WorldSkills UK welcomed an international delegation from Hungary, and in February, a Local Skills Competition was hosted in Swindon. March concluded with the Equity, Diversity & Inclusion Heroes Awards and the announcement of Squad UK for WorldSkills Shanghai 2026.

These achievements demonstrate WorldSkills UK’s strategic focus on embedding international best practice, supporting economic growth, and ensuring young people are equipped with the high-quality skills needed to thrive in a competitive global economy.

Funding diversification

In 2024–25, WorldSkills UK’s non-core income surpassed core government funding for the third consecutive year, demonstrating effective leverage of its DfE core grant. The organisation generated £7.4m in diversified income £400k more than the previous year including £1.4m in direct commercial investment and UK devolved nations funding. Additionally, co-investment through in-kind contributions from employers, education providers, and UK governments increased by £200k to £6m, reflecting strong crosssector support. WorldSkills UK continued to broaden and deepen its investment partnerships, prioritising active engagement across its programmes and fostering more participatory, long-term relationships with commercial partners. This strategic approach lays a solid foundation for sustainable commercial growth and resilience.

Strategic partnerships

In addition to expanding its network of new business and employer partnerships, WorldSkills UK continued to strengthen its strategic and funding relationships with the DfE. Collaborations with the Northern Ireland Government and the Welsh Government were reinforced through ongoing grant agreements, particularly via the Inspiring Skills in Excellence in Wales project. In Scotland, funding provided through the Scottish Funding Council for the 2024–25 period extended into the first quarter of 2025. WorldSkills UK also established strategic investment partnerships with various industry stakeholders, with a particular focus on securing financial support for new competitions. NCFE remained a key funder for the second phase of the Centre of Excellence Continuing Professional Development (CPD) programme, which was further supported by additional investments. WorldSkills UK’s partnership with Pearson was very successful, with the awarding organisation sponsoring Team UK, co-branded initiatives, event participation, and extensive PR and social media engagement.

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Future plans

Looking ahead, WorldSkills UK is focused on transforming teaching and learning by championing collaboration, innovation, and global best practices. Its goal is to help build a world-class skills economy, equipping employers with the talent they need and empowering young people to launch successful careers. The organisation values the vital contributions of its partners across UK governments, education, industry, and the wider skills sector, recognising that collective action is key to delivering a highperforming, future-ready skills system across the UK.

Financial review and results for the year

The Statement of Financial Activities (SoFA), set out on page 19 shows that gross income increased by 2% to £8.12 million (2024: decreased by 7.6% to £7.97 million) and expenditure decreased by 1.9% to £8.37 million (2024: decreased by 3.9% to £8.53 million) resulting in a decrease of net assets of £250k to £2.58 million (2024: decrease of £560k to £2.83 million).

Financially:

• income generated through unrestricted grants and donations (including investment income) totalled £1.17m (2024: £1.02m)

• income generated through restricted grants and donations was £6.95m (2024: £6.95m)

• expenditure on careers advice events, teacher training and skills competition programmes totalled £8.37m (2024: £8.50m).

Going concern

The Trustees have received written confirmation that the DfE expects to continue to provide grant funding for 2026-27 and therefore it is considered that the charity will have sufficient funds to continue its activities for a period of at least 12 months from the date these financial statements are approved.

Therefore, the Trustees continue to operate the going concern basis in preparing these financial statements.

Financial management policies

Reserves

WorldSkills UK is predominantly funded by grants from Central UK Government to use international best practice to raise standards in apprenticeships and technical education so more young people and employers succeed.

The charity is also funded by sponsorship and other grants including NCFE.

Restricted Reserves represent funds received subject to specific conditions imposed by the donor.

Unrestricted reserves represent funds that are freely available to spend on any of the charity’s purposes and have been built up over a number of years from unrestricted non-core grant income.

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Reserves policy

Minimum unrestricted free reserves

The overriding principle is that WorldSkills UK should set and maintain a minimum level of unrestricted free reserves that is sufficient to cover the organisation’s statutory and legal obligations, ensure its liquidity, and if required fund the winding up of its affairs in an orderly way.

Other reserves

Any unrestricted reserves generated over and above this minimum reserve level may be used to mitigate against uncertainties that might either cause unforeseen delivery costs or impact our income generating potential and to fund future growth. These unrestricted reserves should not be used to cover day-to-day running costs. In order to use these unrestricted reserves, the Chief Executive must seek approval from the Board of Trustees by presenting a strong business case with a compelling return on investment (ROI), first for review by the Finance, Audit and Risk Committee and then subject to majority approval by the Board. Plans for use of these unrestricted reserves are presented to the Board annually as part of their review of the reserves policy.

Designated reserves

Trustees have the authority to allocate unrestricted reserves for specific purposes. In 2024–25, £30,000 was designated from these reserves to fund an external VAT review conducted by independent consultants. This review aimed to ensure the organisation’s full compliance with HMRC VAT regulations and best practices.

Investment policy

The Trustees, having regard for the liquidity requirements of the charity, and levels of risk appropriate to the organisation, hold all the charity’s reserves in short-term, interest-bearing cash deposits.

Required level of minimum unrestricted free reserves

To set a value for the minimum unrestricted free reserves level, the Trustees have considered the requirement for an orderly closure of the Charity. The calculation has therefore been set as at least one quarter of the annual operating budget, excluding Centre of Excellence project spend (which is NCFE grant funded), depreciation and Value in Kind donations as they are non-cash items. The total level of minimum reserves is therefore set at £1.95m based on the 2024-25 budget.

Should the level of unrestricted free reserves fall below the minimum value then the Finance, Audit and Risk Committee needs to be informed and an action plan needs to be drawn up and approved by the Finance, Audit and Risk Committee to recover the unrestricted free reserves back to the minimum level.

Setting the level of minimum unrestricted free reserves

The required level of minimum unrestricted free reserves is set at the beginning of the year according to the above formula based on the budgeted expenditure for that year and approved by the Finance, Audit and Risk Committee. If annual expenditure plans for a future year should include a single, high-value contractual commitment, this

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should be recognised in the annual revision of the minimum unrestricted free reserves level.

Monitoring the level of minimum unrestricted free reserves

It is the responsibility of the Finance, Audit and Risk Committee to monitor the minimum level of unrestricted free reserves.

Employees

WorldSkills UK had an average of 51 employees in the year. The charity believes its employees are its greatest asset and recognises its responsibility to ensure they are afforded appropriate support throughout their employment.

WorldSkills UK aims to support employees in their role so that they feel confident to undertake the responsibilities placed upon them and ultimately are able to contribute to the success of the organisation. It is committed to providing equal opportunities in employment and to avoiding unlawful discrimination in the work environment. WorldSkills UK is fully aware of its responsibilities as an employer and acts in accordance with legislation.

Auditor

In accordance with the Companies Act 2006 a resolution proposing the appointment of Forvis Mazars LLP as auditors will be put to the members.

Members of the Board

Tanaka Chiimba (appointed: 20 March 2025) Dame Dawn Childs DBE (Deputy Chair of the Board – resigned 30/06/2024) Jennifer Coupland Mark Dawe (Chair of the Finance, Audit and Risk Committee – resigned 31/10/2024) Mark Farrar

Nichola Hay MBE (appointed: 2 May 2025) Mel Higgins Mike James Shane Mann (appointed: 20 March 2025) Audrey Nelson Marion Plant OBE, FCGI (Chair of the Board) Justin Rix (Deputy Chair of the Board Chair of the People, Culture and Governance Committee) Jatinder Sharma CBE, DL Jonathan Vincent Professor Sean Wellington Rachel Wilson (appointed: 20 March 2025)

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Finance, Audit and Risk Committee

Tanaka Chiimba (appointed: 20 March 2025) Mark Dawe (Committee Chair) – resigned 31/10/2024 Dame Dawn Childs DBE (resigned 30/06/2024) Jennifer Coupland Nichola Hay MBE (appointed: 2 May 2025) Mark Farrar Mel Higgins (Committee Chair) Andrew Ridley (independent co-opted member) Mike James

People, Culture and Governance Committee

Shane Mann (appointed: 20 March 2025) Audrey Nelson Justin Rix (Committee Chair) Jatinder Sharma CBE, DL Jonathan Vincent Professor Sean Wellington Rachel Wilson (appointed: 20 March 2025)

Executive Officers

Benjamin Blackledge, CEO Nils Kendall, Company Secretary

Registered office

52-54 St. John Street London EC1M 4HF

Principal professional advisers

Solicitors

Bates Wells 10 Queen Street Place London EC4R 1BE

Bankers

The Co-operative Bank Plc PO Box 250 Skelmersdale WN8 6WT

Auditors

Forvis Mazars LLP 6 Sutton Plaza Sutton Court Road Sutton Surrey SM1 4FS

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By order of the Board of Trustees

Marion Plant OBE, FCGI

Chair of the Board of Trustees, WorldSkills UK signing as so authorised.

Date: 19 December 2025

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WORLDSKILLS UK

Opinion

We have audited the financial statements of WorldSkills UK (the ‘charity’) for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and 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 FRS 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:

• give a true and fair view of the state of the charity’s affairs as at 31 March 2025 and of its income and expenditure for the year then ended

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice

• have been prepared in accordance with the requirements of the Companies Act 2006.

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 of the trustees, other than the financial statements and our auditor’s report thereon. The

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trustees are responsible for the other information contained within the annual report of the trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the annual report of the trustees which includes the strategic report and the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors’ report included within the annual report of the trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In 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 strategic report and the directors’ report included within the annual report of the trustees.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of the Trustees

As explained more fully in the Trustees’ responsibilities statement on pages 4 and 5, the trustees (who are also the directors of the charitable company for the purposes of company laws) 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

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Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do 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 the financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

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.

Based on our understanding of the charity and its activities, we considered that noncompliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and antimoney laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to noncompliance, our procedures included, but were not limited to:

• Inquiring of management and, where appropriate, those charged with governance, as to whether the charity is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations

• Inspecting correspondence, if any, with relevant licensing or regulatory authorities

• • Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit

• Considering the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud.

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006 and the Charities Statement of Recommended Practice.

In addition, we evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of

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management override of controls, and determined that the principal risks related to income recognition and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

• Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud

• Gaining an understanding of the internal controls established to mitigate risks related to fraud

• Discussing amongst the engagement team the risks of fraud

• Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is

located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities.

This description forms part of our auditor’s report.

Use of the audit report

This report is made solely to the charity’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed.

Nicola Wakefield (Dec 22, 2025 19:55:20 GMT)

Nicola Wakefield (Senior Statutory Auditor) for and on behalf of Forvis Mazars LLP Chartered Accountants and Statutory Auditor:

2[nd] Floor, 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey, SM1 4FS

Dated: ………………………………

22/12/2025

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WORLDSKILLS UK

STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating the Income and Expenditure Account

and Statement of Total Recognised Gains and Losses) FOR THE YEAR ENDED 31 MARCH 2025

Notes	Unrestricted Restricted 2025 2024
	Funds Funds Total Total
	£ £ £ £
INCOME FROM
Generated funds:
Income from investments 2	25,459 - 25,459 30,681
Income from charitable activities:
Using competitions to raise skill standards and promote excellence	1,147,332 6,950,000 8,097,332 7,939,806
Income in kind and donated facilities 9	- - - -
Total income EXPENDITURE ON Expenditure on Raising funds: Fundraising costs 4 Charitable activities by objective: Using careers advice events and skills competitions to raise skill standards and promote excellence 4 Total expenditure 4 Net expenditure for the year Fund balances brought forward Fund balances carried forward 16	1,172,791 6,950,000 8,122,791 7,970,487
	65,746 - 65,746 28,411 1,343,769 6,963,676 8,307,445 8,502,187
	1,409,515 6,963,676 8,373,191 8,530,598
	(236,724) (13,676) (250,400) (560,111)
	2,202,833 622,844 2,825,677 3,385,788
	1,966,109 609,168 2,575,277 2,825,677

The statement of financial activities has been prepared on the basis that all operations are continuing operations.

The notes on pages 22 to 33 form part of these financial statements

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WORLDSKILLS UK BALANCE SHEET

AS AT 31 MARCH 2025

	Note	2025	2024
		£	£
FIXED ASSETS
Intangible assets	10	267,380	461,690
Tangible assets	11	65,755	89,044
Investments	12	-	-
		333,135	550,734
CURRENT ASSETS
Debtors	13	1,263,887	1,746,852
Cash at bank		1,989,159	1,604,897
		3,253,046	3,351,749
CREDITORS: amounts
falling due within one year	14	(1,010,904)	(1,076,806)
NET CURRENT ASSETS		2,242,142	2,274,943
NET ASSETS		2,575,277	2,825,677
FUNDS
Restricted funds	15	609,168	622,844
Unrestricted funds	15	1,716,237	1,734,004
Designated funds	15	249,872	468,829
TOTAL FUNDS	16	2,575,277	2,825,677

Approved by the Board of Trustees and signed on their behalf by: -

Marion Plant OBE, FCGI

Chair of the Board of Trustees, WorldSkills UK

Dated: 19 December 2025

The notes on pages 22 to 33 form part of these financial statements

Page 20 of 33

WORLDSKILLS UK

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2025

2025	2024
£	£
Net cash inflow/(outflow) from operating activities (Note a) 399,483 Cash flows from investing activities Bank and other interest receipts 25,459 Purchase of tangible fixed assets (23,320) Purchase of intangible fixed assets (17,360)
	(591,644)
	30,681
	(91,809)
	(185,448)
Net cash used in investing activities (15,221)	(246,576)
Net increase/(decrease) in cash and cash equivalents 384,262	(838,220)
Cash and cash equivalents at the beginning of the reporting period 1,604,897 2,443,117
Cash and cash equivalents at the end of the reporting period 1,989,159 1,604,897

All cash and cash equivalents at the end of the reporting period relates to cash at bank and in hand

NOTES TO THE CASH FLOW STATEMENT

Note a: Reconciliation of expenditure to net cash flow from operating activities

	2025	2024
	£	£
Net expenditure for the year	(250,400)	(560,112)
Bank and other interest receipts	(25,459)	(30,681)
Depreciation of fixed assets	46,609	27,683
Amortisation of fixed assets	211,670	194,092
Decrease in debtors	482,965	575,312
(Decrease)/increase in creditors	(65,902)	352,685
Net cash inflow/(outflow) from operating	399,483	(591,644)
activities

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WORLDSKILLS UK

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2025

1. ACCOUNTING POLICIES

Charity information

WorldSkills UK is a private company limited by guarantee incorporated in England and Wales. The registered office is 52-54 St. John Street, London, England, EC1M 4HF25. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.

Basis of accounting

These financial statements have been prepared under the historical cost convention and in accordance with 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) (effective January 2019)", FRS 102 "The Financial Reporting standard applicable in the UK and Republic of Ireland" and the requirements of the Companies Act 2006.

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Basis of consolidation

The financial statements present information about the charitable company as an individual undertaking and not about its group. The charitable company has taken advantage of the exemptions provided by section 405 of the Companies Act 2006 not to prepare consolidated accounts as the subsidiary company is not material to the group.

Going concern

The Trustees have received written confirmation that the DfE expects to continue to provide grant funding for 2026-27 and therefore it is considered that the charity will have sufficient funds to continue its activities for a period of at least twelve months from the date these financial statements are approved.

In the event that a final funding agreement is not reached, the Trustees have reviewed the impact that this would have on the remaining operations of the charity, and have prepared cash flow forecasts, considering mitigating actions as required to reduce expenditure, which confirm that there is sufficient cash for the charity to cover its fixed costs for a period of at least twelve months from the date of approval of these financial statements.

Therefore, the Trustees continue to operate the going concern basis in preparing these financial statements.

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Critical accounting judgements and key sources of estimation uncertainty

In the application of the charitable company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Income in kind for equipment and materials donated or lent to support the running of the national finals of the skills competitions is valued at current market rates for purchase, where goods given to WorldSkills UK, or hire where goods are lent. Where there is no hire market for the equipment lent, the value is estimated at 15% of the full market purchase value. Income in kind for the development of digital careers training content is valued at the market cost of the development of comparable material.

The useful economic life of intangible assets is estimated to be 5 years.

There were no other specific judgments, estimates and assumptions that were critical to the preparation of these financial statements.

a) Income

Income is included in the Statement of Financial Activities (SoFA) when the Charity is legally entitled to the income and the amount can be quantified with reasonable certainty. Income received in advance of due performance under a contract is accounted for as deferred income until earned. Grant income is included when the related conditions for legal entitlement to the grant have been met. All other income is accounted for on an accruals basis.

b) Income in Kind

Income in kind is included in the Statement of Financial Activities (SoFA) where it has been possible to attribute a value to WorldSkills UK of the donation. The value to WorldSkills UK is based on the value that WorldSkills UK would have expended had the income in kind not been received. Income in Kind loans for the period of the event are valued at the appropriate hire cost if available. Where no value can be reasonably attributed to the loan it is excluded from the Statement of Financial Activities (SoFA).

In accordance with the Charities SORP (FRS 102), the general volunteer time is not recognised as a quantified value in the accounts.

Income in kind for the development of digital careers training content is valued at the market cost of the development of comparable material.

c) Government grants

Government grants are recognised in the period in which they are receivable to the extent the conditions of funding have been met. Where income is received in advance

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of entitlement of receipt its recognition is deferred and included in creditors and deferred income. Where entitlement occurs before income is received the income is accrued.

d) Expenditure

All expenditure is accounted for on an accruals basis. Charitable activities include costs of services and support costs. Costs of generating funds include fundraising. Non-staff costs not attributable to one category of activity are allocated or apportioned pro rata to the staffing of the relevant service. Governance costs are those associated with constitutional and statutory requirements.

e) Termination benefits

WorldSkills UK offers statutory levels of redundancy payments. In addition to any statutory redundancy pay due, pay in lieu of notice and payment for holidays accrued and not taken is also paid. Redundancy pay is not subject to deductions for Tax and National Insurance.

f) Fund accounting

Unrestricted funds represent those resources which may be used towards meeting any of the charitable objects of WorldSkills UK.

Restricted General funds are resources subject to specific restrictions imposed by funders or donors.

g) Intangible fixed assets

Assets are stated at cost less accumulated amortisation. Amortisation is charged on a straight-line basis over their useful lives, being 5 years.

h) Tangible fixed assets

Assets are stated at cost or, where donated, stated at valuation based on their value over their useful life less accumulated depreciation.

i) Depreciation

Depreciation is provided to write off the cost, less estimated residual values, of all fixed assets on a straight-line basis over their expected useful lives of 3 years.

Office equipment – 3 years straight line.

j) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discounts offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

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k) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

l) Creditors and provisions

Trade and other creditors (including accruals) payable within one year are initially measured at the transaction price and subsequently measured at amortised cost, being transaction price less any amounts settled.

Provisions are recognised when the charity has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and that obligation can be measured or estimated reliably.

m) Taxation

No provision is made for Corporation Tax, as the Charity is able to claim full statutory exemption subject to the proper application of all its charitable resources.

n) VAT

Income and expenditure are recorded exclusive of VAT, where appropriate, except where it is not permissible to reclaim input VAT or where partial exemption rules apply.

o) Pension costs

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. The annual contributions payable are charged to the Statement of Financial Activities.

p) Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight-line basis over the period of the lease.

**2. **	INVESTMENT AND OTHER INCOME
		2025	2024
		£	£
	Interest received	25,459	30,681

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3. NET (EXPENDITURE) FOR THE YEAR

3. NET (EXPENDITURE) FOR THE YEAR
	2025	2024
This is stated after charging:	£	£
Amortisation of intangible fixed assets	211,670	194,092
Depreciation	46,609	27,683
Auditor’s remuneration:
Fees payable to the charity’s auditor for the audit of the charity’s
annual accounts	23,015	21,925
Total office lease payments	168,494	155,703
Total other operating lease payments	5,000	5,000

4. ANALYSIS OF TOTAL EXPENDITURE

	Staff Support Direct 2025 2024
	Costs Costs Costs Total Total
	£ £ £ £ £
Cost of generating funds:
Fundraising costs	- - 65,746 65,746 28,411
Charitable Expenditure:
Costs of activities in furtherance of the
charity’s objectives: Using competitions to raise skill standards and promote excellence	3,174,436 807,010 4,280,984 8,262,430 8,463,332
Governance costs	- 45,015 - 45,015 38,855
Total expenditure	3,174,436 852,025 4,346,730 8,373,191 8,530,598

Expenditure on charitable activities was £8,373,191 (2024: £8,530,598) of which £6,963,676 (2024: £7,045,424 was restricted and £1,409,515 (2024: £1,485,174) was unrestricted.

5. SUPPORT COSTS

. SUPPORT COSTS
		Office	Governance	2025	2024
		Costs	Costs	Total	Total
	General
	£	£	£	£	£
Using competitions to raise skill
standards and promote excellence	222,444	584,566	45,015	852,025	833,396

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6. EMPLOYEES

6. EMPLOYEES
	2025 2024
	£ £
Staff costs consist of:
Wages and salaries	2,635,507 2,522,316
Social security costs	290,867 279,549
Pension costs	144,354 133,079
External staff costs	103,708 53,847
	3,174,436 2,988,791

The average monthly number of employees on average basis during the year was made up as follows:

p as follows:
	2025	2024
	No.	No.
Permanent contract	43	37
Fixed-term contract	8	12
	51	49
The number of employees whose emoluments exceeded £60,000 was:
	2025	2024
	No.	No.
£60,001 to £70,000	3	3
£70,001 to £80,000	2	3
£80,001 to £90,000	2	2
£120,001 to £130,000	1	1

The number of higher paid staff who contribute into a pension scheme is 8 (2024: 9), at a cost of £44,018 (2024: £41,270).

7. TRUSTEES’ REMUNERATION, EXPENSES and key management personnel

None of the members of the Board of Trustees received any remuneration during this year for their services as a trustee (2024: £Nil).

During the year, 5 Trustees (2024: 5) received reimbursements of personal travel and subsistence expenditure amounting to £2,576 (2024: £1,842).

The total Key Management Personnel (The Board, CEO and Directors) payroll costs during this year were £640,694 (2024: £635,746).

8. REDUNDANCY AND TERMINATION BENEFITS

WorldSkills UK offers statutory levels of redundancy payments. In addition to any statutory redundancy pay due, pay in lieu of notice and payment for holidays accrued and not taken is also paid. Redundancy pay is not subject to deductions for Tax and National Insurance.

Total amount of payments made for period: £17,265 (2024: £Nil).

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9. INCOME IN KIND

WorldSkills UK benefits greatly from the involvement and enthusiastic support of its many volunteers, details of which are given in our annual report. In accordance with FRS 102 and the Charities SORP (FRS 102), income in kind and the economic contribution of general volunteers is not recognised in the accounts.

10. INTANGIBLE FIXED ASSETS

	Software £ Total £
Cost
At 1 April 2024	1,104,923 1,104,923
Additions	17,360 17,360
At 31 March 2025	1,122,283 1,122,283
Amortisation
At 1 April 2024	643,233 643,233
Charge for the year	211,670 211,670
At 31 March 2025	854,903 854,903
Net book value
At 31 March 2025	267,380 267,380
At 31 March 2024	461,690 461,690

11. TANGIBLE FIXED ASSETS

	Equipment £ Total £
Cost
At 1 April 2024	435,461 435,461
Additions	23,320 23,320
At 31 March 2025	458,781 458,781
Depreciation
At 1 April 2024	346,417 346,417
Charge for the year	46,609 46,609
At 31 March 2025	393,026 393,026
Net book value
At 31 March 2025	65,755 65,755
At 31 March 2024	89,044 89,044

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12. INVESTMENTS

The Charity owns all of the issued ordinary share capital of its subsidiary, The Skills Show Ltd. This investment is included in the company financial statements at its historic cost of £nil (2024: £nil).

The subsidiary is a company registered in England and Wales at 52-54 St. John Street, London, England, EC1M 4HF and was dormant throughout the accounting period.

The subsidiary is not material for the purpose of giving a true and fair view. The charity has therefore taken advantage of exemption provided by section 405 the Companies Act 2006 not to prepare group accounts.

13. DEBTORS

	2025 2024
	£ £
Trade debtors	164,429 136,002
Rent deposit Prepayments and accrued income	30,158 1,069,300 23,708 1,587,142
	1,263,887 1,746,852

14. CREDITORS: amounts falling due within one year

	2025 2024
	£ £
Trade creditors	296,453 426,316
Other taxes and social security costs	462,936 492,480
Accruals and deferred income	250,574 156,809
Other creditors	941 1,201
	1,010,904 1,076,806
Movements on deferred income account in year: -
Contract receipts unearned as at 1 April	104,149 65,066
Amounts released in year	(103,749) (64,666)
Amounts received in year	118,166 103,749
Contract receipts unearned at 31 March	118,566 104149

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15. FUNDS

5. FUNDS
	Designated ….funds		Restricted ….funds		Unrestricted funds £ 1,734,004 1,172,791 (1,190,558)	Total Funds £ 2,825,677 8,122,791 (8,373,191) 2,575,277
	£		£
Balance at 1 April 2024	468,829		622,844
Income			6,950,000
Expenditure	(218,957)		(6,963,676)
Balance at 31 March 2025	249,872		609,168		1,716,237

Designated funds of £350,000 were set aside from unrestricted reserves in October 2021 to underwrite innovative activities essential to the future sustainability of WorldSkills UK, which include supporting the Centre of Excellence, investment in key technology to deliver against the strategy with reduced staffing levels and maintain a contingency to mitigate future organisational changes. The designated funds were spent over a period of three years from October 2021. In 2023-24, £203,000 was set aside to provide additional support to Centre of Excellence and acquire a new Customer Relations Management system, part of which was spent in 2024-25. During 2024-25, £30,000 was designated from unrestricted reserves to fund an external VAT review conducted by independent consultants.

Restricted funds are funds received subject to specific conditions imposed by the donor.

		£	£		£
Department for Education	422,069 6,700,000 (6,714,621) 407,448
NCFE	200,775	250,000	(249,055)		201,720
Balance at 31 March 2024	622,844 6,950,000 (6,963,676) 609,168

The Department for Education (DfE) grant supports WorldSkills UK to raise standards in technical education and skills training (TVET), working towards world class levels, through national and international competition-based training, workforce development in FE sector and careers activities that increase the prestige of TVET.

The NCFE grant supports Centre of Excellence which aims to mainstream excellence across the UK by developing a cohort of world-class educators, delivering global expertise and driving up standards, supporting the creation of a world-class education system.

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The carried forward funds have been committed to the competition registration system, the event management system, the skills hub and to continue the development of the Centre of Excellence.

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fund balances at 31 March 2025 are represented by:

Intangible fixed assets Tangible fixed assets Net current assets	Restricted funds Unrestricted funds Total funds £ £ £ 208,125 59,255 267,380 33,755 32,000 65,755 367,288 1,874,854 2,242,142
	609,168 1,966,109 2,575,277

17. PENSION

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity.

The pension cost charge represents contributions payable by the charity to the fund and amounted to £144,354 (2024: £133,079).

18. LEASE COMMITMENTS

The minimum commitments due under non-cancellable operating leases in the next year are:

	2025 2024 £ £ 151,323 39,894 116,037 -
Land and Buildings
On operating leases expiring
Within one year
Within 2 to 5 years
	267,360 39,894

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19. RELATED PARTY TRANSACTIONS

Marion Plant OBE, FCGI is Chair of the board of WorldSkills UK and Principal and Chief Executive of North Warwickshire and South Leicestershire College (NWSLC). During the year WorldSkills UK made sales to NWSLC of £nil (2024: £nil) and purchases of £27,630 (2024: £24,365). At the year end, there were no balances outstanding with NWSLC (2024: £nil).

Jonathan Peter Vincent is a trustee of the board of WorldSkills UK and Principal and Chief Executive of Glasgow Clyde College. During the year WorldSkills UK made purchases from Glasow Clyde College of £21,740 (2024: £15,840)

Mel Higgins is a trustee of the board of WorldSkills UK and Principal and Chief Executive and operating Officer of Northern College. During the year WorldSkills UK made purchases from Northen College of £19,275 (2024: £70).

Professor Sean Wellington is a Trustee of the Board of WorldSkills UK and former Provost - Deputy Vice- Chancellor of Middlesex University (resigned in 2024) During the year WorldSkills UK made purchases from Middlesex University of £31,830 (2024: £28,139).

Shane Rober Mann is a CEO and Founder of Education Scape Ltd. During the year WorldSkills UK made purchases from Education Scape Ltd of £22,145.

Rachel Wilson is a Trustee at Enginuity and EAL. During the year WorldSkills made sales to Enginuity for £17,000 and EAL for £10,000.

At the year-end nothing was owed to trustees in relation to expenses (2024: £nil).

20. ANALYSIS OF CHANGES IN NET FUNDS

	At 1 April 2024 £ Cash flows £ At 31 March 2025 £
Cash at bank and in hand	1,604,897 384,262 1,989,159
	1,604,897 384,262 1,989,159

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21. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024

Notes	Unrestricted Restricted 2024
	Funds Funds Total
	£ £ £
INCOME FROM
Generated funds:
Income from investments 2	30,681 - 30,681
Income from charitable activities:
Using competitions to raise skill standards and promote excellence	989,806 6,950,000 7,939,806
Total income	1,020,487 6,950,000 7,970,487
EXPENDITURE ON
Expenditure on Raising funds:
Fundraising costs 4	28,411 - 28,411
Charitable activities by objective:
Using careers advice events and skills competitions to raise skill standards and promote excellence 4	1,456,763 7,045,424 8,502,187
Total expenditure 4	1,485,174 7,045,424 8,530,598
Net income/(expenditure) for the year	(464,687) (95,424) (560,111)
Fund balances brought forward	2,667,520 718,268 3,385,788
Fund balances carried forward 16	2,202,833 622,844 2,825,677

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Company No: 02535199 Charity No: 1001586

WORLDSKILLS UK

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Page 1 of 33

CONTENTS	Page
Annual Report of the Trustees incorporating the Strategic Report	2 to 13
Independent Auditor’s Report	14 to 18
Statement of Financial Activities	19
Balance Sheet	20
Statement of Cashflows	21
Notes to the Financial Statements	22 to 33

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The Board of Trustees of WorldSkills UK (“the Charity”) presents its annual report incorporating the strategic report for the year ended 31 March 2025 together with the audited financial statements for that year, under the Companies Act 2006, the Charities Act 2011, FRS 102 (effective 1 January 2019) and applicable accounting standards.

Reference and administrative details

WorldSkills UK is a registered charity (No. 1001586) and a company (No. 02535199) limited by membership guarantees. Its registered office is as shown on pages 12-13.

The present Trustees (who are also the Directors), and any past Trustees who served during the year, are shown on page 12 and 13, together with the names of the senior executive staff. The external advisers of the Charity are also set out on page 13.

Structure, Governance and Management

The Charity is governed by its Articles of Association adopted on 29 August 1990 and last amended by a special resolution passed on 14 February 2019.

The Board of Trustees is responsible for the overall governance of the Charity. Trustees are elected by the Board after a procedure involving their proposal by a member, or members of the Board and a formal interview. The total number of Trustees may not exceed 13, or such other maximum number as the Trustees decide which is currently

1. Trustees may only remain in office for eight consecutive years (two terms of office of four years) unless the Board of Trustees resolves that they may remain for a further period.

Qualifying third party indemnity provision is in place for the benefit of all Trustees of the charity.

The Board delegates the exercise of certain powers in connection with the management and administration of the Charity as set out below. This is controlled by requiring regular reporting back to the Board, so that all decisions made under delegated powers can be ratified by the full Board in due course.

The Skills Show Ltd which is a fully owned subsidiary of WorldSkills UK has remained dormant throughout the year and has not traded in 2023/24.

In June 2023, the Board confirmed a new sub-committee structure merging the Finance and General Purposes Committee with the Audit Committee and merging the Remuneration Committee with the Governance Committee to create the committees as set out below.

Finance, Audit and Risk Committee

The role of the Finance Audit and Risk Committee is to advise the WorldSkills UK Board on matters of financial management, accountability, corporate services, risk assessment, risk management, and internal control. The Committee comprises Trustees, independent co-opted members (not Trustees) and other advisers who are independent of the management and free of any relationship that in the opinion of the

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Board of Trustees would conflict with the exercise of independent judgement as members of the Committee. The Committee meets at least quarterly.

People, Culture and Governance Committee

The role of the People, Culture and Governance Committee is to ensure WorldSkills UK provides an excellent and safe working environment for its employees through robust and effective people management. The Committee establishes a formal and transparent procedure for developing policy on remuneration across the staff team and specifically set the remuneration packages for members of the Senior Leadership Team (excluding the Chief Executive whose remuneration is determined by the Board) and where appropriate members of the Board. The Committee oversees Board membership and succession planning and reviews WorldSkills UK’s governance structures and processes to ensure all requirements for company and charity governance are met and that the Board has the right mix of skills and experience to advance WorldSkills UK’s mission and strategy.

Trustees’ induction and training

New Trustees receive a copy of the WorldSkills UK Trustee Induction pack which includes information on their legal obligations under charity and company law, a Trustee job description, information about the charity and a copy of the Articles of Association. They also have one-to-one briefings with the Chair, Deputy Chair, Chief Executive and Company Secretary where they receive information about the decisionmaking processes, Board structure, and receive a copy of the WorldSkills UK forward strategy. Trustees are able to attend external training events appropriate to their roles. During the year, the charity provided indemnity insurance for its Trustees.

Statement of Trustees’ responsibilities

The Trustees (who are also Directors of WorldSkills UK for the purpose of company law) are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Policies).

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 income and expenditure of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently

• observe the methods and principles in the Charities SORP

• make judgments and accounting estimates that are reasonable and prudent

• state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

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

So far as the Trustees are aware:

• there is no relevant audit information of which the Charity’s auditors are unaware

• the Trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the Charity's auditors are aware of that information.

Corporate governance

The system of internal control is designed to manage risk to a reasonable level rather than eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of control is based on an ongoing process designed to:

• identify and prioritise the risks related to the achievement of policies, aims and objectives

• evaluate the likelihood of those risks being realised and the impact should they be realised

• manage them efficiently, effectively and economically.

The Trustees review the effectiveness of internal control. This comprises:

• review by the Finance, Audit and Risk Committee and the Board of the strategy and Annual Budget

• review by the Finance, Audit and Risk Committee and the Board of the monthly management accounts

• review of the appropriateness of processes and procedures by the Finance, Audit and Risk Committee

• review by the Finance, Audit and Risk Committee and the Board of delivery activity across operational areas

• advice on financial control by the Finance, Audit and Risk Committee

• review and action resulting from comments by the external auditors in their management letter

• review and action resulting from comments of internal audit work.

WorldSkills UK does not have an in-house internal audit function at present. However, internal audit work may be commissioned in specific areas after undertaking a comprehensive risk assessment and value for money exercise.

Risk management

Since 2023, leadership on risk management issues has rested with the Board and the Finance, Audit and Risk Committee. Both are able to draw on the additional expertise of non-executive members with experience of the private and not for profit sectors. The

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Finance, Audit and Risk Committee acts in an advisory and overview capacity, taking a financial and management lens. At its quarterly meetings, it reviews the risk register as a standing agenda item and reports to the Board. The People, Culture and Governance Committee advises the Board on risks and issues relating to organisational development and staffing matters in particular. The Board receives and comments on the risk register at each of its meetings.

At a strategic level, management of risk is embedded in the planning and performance reporting processes of the organisation. Each major work programme is assessed for risk at its outset and risks are then reviewed and reported monthly as part of the organisation’s project management process. The Senior Leadership Team (SLT) considers an overview of these project level risks monthly and assesses this against the corporate level strategic risk register.

The charity faced a number of principal risks and uncertainties:

WorldSkills UK’s grant relationship with the Department for Education (DfE) means its strategic direction and funding are closely linked with the policies and decisions of the DfE. The general election in July 2024 presented a number of risks and opportunities. These related, in particular, to the importance of demonstrating WorldSkills UK’s contribution to the Government’s agenda, refining programmes to align well with the Government’s emerging strategies, fully meeting grant requirements, and developing strong relationships with the new ministerial team and others in Government circles. It remained critical for WorldSkills UK to continue to build its relations with teams across the Department and maintain its focus on evidencing impact and value to the public purse.

Given that the grant value in 2024-25 was the same as 2023-24, this was a reduction in real terms. This steady reduction, at a time of significant pressure on public funding and ongoing inflation, called for careful management by the SLT throughout the year. There was a focus on increasing commercial income, growing delivery, including digital programmes, making efficiencies where possible and maximising achievement on KPIs.

2024-25 was the final year of WorldSkills UK’s two-year grant, following an open competitive tendering process run by the DfE. There is facility in the grant to extend it by up to two years from 2025-26, though without the guarantee of the same funding rate. Late in 2024-25, the DfE notified WorldSkills UK that it would extend the grant by one year with a 15% reduction in funding and would review its procurement the WorldSkills UK programme for 2026-27 and beyond during the year. This situation presented challenges of managing the reduced budget alongside uncertainties regarding future grant and delivery arrangements. The DfE recognised that the funding situation did not reflect the success of WorldSkills UK in 2024-25 and acknowledged its strong performance.

Effectively aligning strategies and programmes with the differing policy and funding objectives of all four UK nations is a continuing challenge that WorldSkills UK seeks to manage by maintaining robust relationships with the governments, stakeholders and elected representatives in each UK nation. Activity levels in the devolved nations are, overall, high and the nations play an extremely valuable role in the performance of

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WorldSkills UK, alongside each making a financial contribution to core funding of WorldSkills UK. WorldSkills UK endeavours to ensure its actions align with UK’s and devolved nations’ policy positions and provide a strong return on their investment.

Overall, despite funding pressures and new Government strategies, WorldSkills UK’s risk position improved through much of 2024-25, supported by strong relations with governments across the UK and high performance on programme delivery. This position decreased at the end of the year in the light of the funding reduction for 202526, though WorldSkills UK is positively managing the changes. It has a sound programme base that performs highly and with increasing impact, good relations with funders and partners and a skilled and experienced organisation. This means WorldSkills UK remains well able to make a major contribution to raising standards in technical education and to better meeting priority skills needs across the UK, and to use its unique global platform and partnerships to leverage engagement.

Principal activities

Introduction

2024-25 has been an impressive year of achievement for WorldSkills UK, continuing to work with partners in UK governments, industry and education to embed world-class skills across the UK.

WorldSkills UKs impacts have been recognised against its three core aims:

• raising standards through international benchmarking

• championing future skills through analysis of rapidly changing economic demand

• empowering young people, from all backgrounds through competitions-based training.

Across its programmes, WorldSkills UK worked closely with partners in England, Scotland, Wales and Northern Ireland; employers and businesses; educational organisations and sector bodies, recognising that these partnerships are vital to achieving the goal of building a world-class skills system across the UK.

Achievements and outcomes

In 2024-25, WorldSkills UK delivered measurable and wide-reaching impact across its national and international programmes. Through strategic partnerships, innovative initiatives, and a commitment to excellence, WorldSkills UK has continued to raise the standard of technical education and apprenticeships across the UK. This report outlines the key achievements and outcomes that demonstrate the value of investment in WorldSkills UK’s work.

WorldSkills UK’s reach and impact in 2024-25 was significant, institutional engagement included 187 General Further Education colleges, 118 Independent Training Providers, and 49 Higher Education Institutions, including 27 members of Institutes of Technology. Over 8,400 educators participated across all WorldSkills UK CPD activities, with 92% reporting that training has enhanced their teaching, understanding or delivery. A further 2,561 educators accessed the WorldSkills UK Learning Laboratory, and 91% agreed that competition-based resources positively impacted the quality of their

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delivery, training, and assessment. More than 165,000 learners benefitted either through CPD-informed teaching or direct WorldSkills UK activities such as benchmarking, competitions, and masterclasses. A total of 12,330 young people were benchmarked against national and international standards, including 5,242 through local endorsed competitions and 1,500 via Centre of Excellence pressure testing. Over 3,600 young people participated in the National Competition Cycle, with 89% reporting improved technical skills and 91% applying those skills in education, work, or other areas of life. Notably, participation from ethnically diverse backgrounds rose to 19%, up from 13% in 2023.

The Centre of Excellence, delivered in partnership with NCFE and with support from The Creation Education Trust, Symetri Ltd and Arkance continued to drive systemic change in technical education. In 2024-25, 5,500 educators engaged with the Centre of Excellence programme, contributing to a total reach of over 250,000 learners since its launch. The programme expanded its use of pressure testing, embedded competitionbased learning into curricula, and deepened engagement through the Learning Laboratory. The Centre of Excellence is also supported by the DfE, Autodesk, and the Manufacturing Technology Centre.

Team UK achieved a top ten finish at WorldSkills Lyon 2024, competing against 69 countries. Representing the UK across 27 skills, 31 competitors secured three silver medals, one bronze, and 12 Medallions for Excellence. The UK’s average score of 707.44 exceeded the international standard of excellence, and 32% of Squad UK were female, reflecting progress in gender representation. Over 50 employers and stakeholders attended the competition, including senior government officials, to observe world-class skills in action and share best practice. This performance reflects the strength of the UK’s technical education system and the collaborative efforts of WorldSkills UK, employers, educators, and governments across all four nations.

The 2024 National Finals, held in Greater Manchester, brought together 402 young people from 128 organisations to compete in 46 disciplines, including foundation and demonstration competitions. The event attracted high-profile visitors including the Skills Minister, the Mayor of Greater Manchester, and international delegates. It showcased the prestige of technical skills and the role of competition-based learning in raising standards and inspiring ambition.

A major development in 2024 was the launch of the Local Skills Competition Endorsement Framework. This initiative embedded competition-based learning at a grassroots level, with 52 institutions endorsed to run 137 local competitions, benchmarking over 5,200 learners. A landmark inter-college competition in London demonstrated the framework’s potential to address regional skills gaps and strengthen employer engagement.

WorldSkills UK also provided over 48,000 young people with meaningful engagements though careers information and resources promoting technical and apprenticeship pathways. Of those engaged, 83% reported improved understanding of post-secondary technical and vocational options, exceeding the target of 75%. The organisation’s work was further supported by 128 Skills Champions who volunteered 607 hours, and media

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coverage reached a circulation of over 642 million, including 24 pieces of national coverage.

Throughout the year, WorldSkills UK hosted and participated in a series of high-impact events. These included the International Skills Summit in May, and the publication of the Skills for Success in the Screen Industries report in June. In July, 12 innovation projects were announced under the Centre of Excellence. August and September saw final preparations and a medal-winning performance at WorldSkills Lyon. Celebrations of Team UK’s achievements took place across the UK and in Parliament from October to December. In January, WorldSkills UK welcomed an international delegation from Hungary, and in February, a Local Skills Competition was hosted in Swindon. March concluded with the Equity, Diversity & Inclusion Heroes Awards and the announcement of Squad UK for WorldSkills Shanghai 2026.

These achievements demonstrate WorldSkills UK’s strategic focus on embedding international best practice, supporting economic growth, and ensuring young people are equipped with the high-quality skills needed to thrive in a competitive global economy.

Funding diversification

In 2024–25, WorldSkills UK’s non-core income surpassed core government funding for the third consecutive year, demonstrating effective leverage of its DfE core grant. The organisation generated £7.4m in diversified income £400k more than the previous year including £1.4m in direct commercial investment and UK devolved nations funding. Additionally, co-investment through in-kind contributions from employers, education providers, and UK governments increased by £200k to £6m, reflecting strong crosssector support. WorldSkills UK continued to broaden and deepen its investment partnerships, prioritising active engagement across its programmes and fostering more participatory, long-term relationships with commercial partners. This strategic approach lays a solid foundation for sustainable commercial growth and resilience.

Strategic partnerships

In addition to expanding its network of new business and employer partnerships, WorldSkills UK continued to strengthen its strategic and funding relationships with the DfE. Collaborations with the Northern Ireland Government and the Welsh Government were reinforced through ongoing grant agreements, particularly via the Inspiring Skills in Excellence in Wales project. In Scotland, funding provided through the Scottish Funding Council for the 2024–25 period extended into the first quarter of 2025. WorldSkills UK also established strategic investment partnerships with various industry stakeholders, with a particular focus on securing financial support for new competitions. NCFE remained a key funder for the second phase of the Centre of Excellence Continuing Professional Development (CPD) programme, which was further supported by additional investments. WorldSkills UK’s partnership with Pearson was very successful, with the awarding organisation sponsoring Team UK, co-branded initiatives, event participation, and extensive PR and social media engagement.

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Future plans

Looking ahead, WorldSkills UK is focused on transforming teaching and learning by championing collaboration, innovation, and global best practices. Its goal is to help build a world-class skills economy, equipping employers with the talent they need and empowering young people to launch successful careers. The organisation values the vital contributions of its partners across UK governments, education, industry, and the wider skills sector, recognising that collective action is key to delivering a highperforming, future-ready skills system across the UK.

Financial review and results for the year

The Statement of Financial Activities (SoFA), set out on page 19 shows that gross income increased by 2% to £8.12 million (2024: decreased by 7.6% to £7.97 million) and expenditure decreased by 1.9% to £8.37 million (2024: decreased by 3.9% to £8.53 million) resulting in a decrease of net assets of £250k to £2.58 million (2024: decrease of £560k to £2.83 million).

Financially:

• income generated through unrestricted grants and donations (including investment income) totalled £1.17m (2024: £1.02m)

• income generated through restricted grants and donations was £6.95m (2024: £6.95m)

• expenditure on careers advice events, teacher training and skills competition programmes totalled £8.37m (2024: £8.50m).

Going concern

The Trustees have received written confirmation that the DfE expects to continue to provide grant funding for 2026-27 and therefore it is considered that the charity will have sufficient funds to continue its activities for a period of at least 12 months from the date these financial statements are approved.

Therefore, the Trustees continue to operate the going concern basis in preparing these financial statements.

Financial management policies

Reserves

WorldSkills UK is predominantly funded by grants from Central UK Government to use international best practice to raise standards in apprenticeships and technical education so more young people and employers succeed.

The charity is also funded by sponsorship and other grants including NCFE.

Restricted Reserves represent funds received subject to specific conditions imposed by the donor.

Unrestricted reserves represent funds that are freely available to spend on any of the charity’s purposes and have been built up over a number of years from unrestricted non-core grant income.

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Reserves policy

Minimum unrestricted free reserves

The overriding principle is that WorldSkills UK should set and maintain a minimum level of unrestricted free reserves that is sufficient to cover the organisation’s statutory and legal obligations, ensure its liquidity, and if required fund the winding up of its affairs in an orderly way.

Other reserves

Any unrestricted reserves generated over and above this minimum reserve level may be used to mitigate against uncertainties that might either cause unforeseen delivery costs or impact our income generating potential and to fund future growth. These unrestricted reserves should not be used to cover day-to-day running costs. In order to use these unrestricted reserves, the Chief Executive must seek approval from the Board of Trustees by presenting a strong business case with a compelling return on investment (ROI), first for review by the Finance, Audit and Risk Committee and then subject to majority approval by the Board. Plans for use of these unrestricted reserves are presented to the Board annually as part of their review of the reserves policy.

Designated reserves

Trustees have the authority to allocate unrestricted reserves for specific purposes. In 2024–25, £30,000 was designated from these reserves to fund an external VAT review conducted by independent consultants. This review aimed to ensure the organisation’s full compliance with HMRC VAT regulations and best practices.

Investment policy

The Trustees, having regard for the liquidity requirements of the charity, and levels of risk appropriate to the organisation, hold all the charity’s reserves in short-term, interest-bearing cash deposits.

Required level of minimum unrestricted free reserves

To set a value for the minimum unrestricted free reserves level, the Trustees have considered the requirement for an orderly closure of the Charity. The calculation has therefore been set as at least one quarter of the annual operating budget, excluding Centre of Excellence project spend (which is NCFE grant funded), depreciation and Value in Kind donations as they are non-cash items. The total level of minimum reserves is therefore set at £1.95m based on the 2024-25 budget.

Should the level of unrestricted free reserves fall below the minimum value then the Finance, Audit and Risk Committee needs to be informed and an action plan needs to be drawn up and approved by the Finance, Audit and Risk Committee to recover the unrestricted free reserves back to the minimum level.

Setting the level of minimum unrestricted free reserves

The required level of minimum unrestricted free reserves is set at the beginning of the year according to the above formula based on the budgeted expenditure for that year and approved by the Finance, Audit and Risk Committee. If annual expenditure plans for a future year should include a single, high-value contractual commitment, this

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should be recognised in the annual revision of the minimum unrestricted free reserves level.

Monitoring the level of minimum unrestricted free reserves

It is the responsibility of the Finance, Audit and Risk Committee to monitor the minimum level of unrestricted free reserves.

Employees

WorldSkills UK had an average of 51 employees in the year. The charity believes its employees are its greatest asset and recognises its responsibility to ensure they are afforded appropriate support throughout their employment.

WorldSkills UK aims to support employees in their role so that they feel confident to undertake the responsibilities placed upon them and ultimately are able to contribute to the success of the organisation. It is committed to providing equal opportunities in employment and to avoiding unlawful discrimination in the work environment. WorldSkills UK is fully aware of its responsibilities as an employer and acts in accordance with legislation.

Auditor

In accordance with the Companies Act 2006 a resolution proposing the appointment of Forvis Mazars LLP as auditors will be put to the members.

Members of the Board

Tanaka Chiimba (appointed: 20 March 2025) Dame Dawn Childs DBE (Deputy Chair of the Board – resigned 30/06/2024) Jennifer Coupland Mark Dawe (Chair of the Finance, Audit and Risk Committee – resigned 31/10/2024) Mark Farrar

Nichola Hay MBE (appointed: 2 May 2025) Mel Higgins Mike James Shane Mann (appointed: 20 March 2025) Audrey Nelson Marion Plant OBE, FCGI (Chair of the Board) Justin Rix (Deputy Chair of the Board Chair of the People, Culture and Governance Committee) Jatinder Sharma CBE, DL Jonathan Vincent Professor Sean Wellington Rachel Wilson (appointed: 20 March 2025)

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Finance, Audit and Risk Committee

Tanaka Chiimba (appointed: 20 March 2025) Mark Dawe (Committee Chair) – resigned 31/10/2024 Dame Dawn Childs DBE (resigned 30/06/2024) Jennifer Coupland Nichola Hay MBE (appointed: 2 May 2025) Mark Farrar Mel Higgins (Committee Chair) Andrew Ridley (independent co-opted member) Mike James

People, Culture and Governance Committee

Shane Mann (appointed: 20 March 2025) Audrey Nelson Justin Rix (Committee Chair) Jatinder Sharma CBE, DL Jonathan Vincent Professor Sean Wellington Rachel Wilson (appointed: 20 March 2025)

Executive Officers

Benjamin Blackledge, CEO Nils Kendall, Company Secretary

Registered office

52-54 St. John Street London EC1M 4HF

Principal professional advisers

Solicitors

Bates Wells 10 Queen Street Place London EC4R 1BE

Bankers

The Co-operative Bank Plc PO Box 250 Skelmersdale WN8 6WT

Auditors

Forvis Mazars LLP 6 Sutton Plaza Sutton Court Road Sutton Surrey SM1 4FS

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By order of the Board of Trustees

Marion Plant OBE, FCGI

Chair of the Board of Trustees, WorldSkills UK signing as so authorised.

Date: 19 December 2025

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WORLDSKILLS UK

Opinion

We have audited the financial statements of WorldSkills UK (the ‘charity’) for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and 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 FRS 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:

• give a true and fair view of the state of the charity’s affairs as at 31 March 2025 and of its income and expenditure for the year then ended

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice

• have been prepared in accordance with the requirements of the Companies Act 2006.

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 of the trustees, other than the financial statements and our auditor’s report thereon. The

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trustees are responsible for the other information contained within the annual report of the trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the annual report of the trustees which includes the strategic report and the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors’ report included within the annual report of the trustees has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In 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 strategic report and the directors’ report included within the annual report of the trustees.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of the Trustees

As explained more fully in the Trustees’ responsibilities statement on pages 4 and 5, the trustees (who are also the directors of the charitable company for the purposes of company laws) 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

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Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do 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 the financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

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.

Based on our understanding of the charity and its activities, we considered that noncompliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and antimoney laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to noncompliance, our procedures included, but were not limited to:

• Inquiring of management and, where appropriate, those charged with governance, as to whether the charity is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations

• Inspecting correspondence, if any, with relevant licensing or regulatory authorities

• • Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit

• Considering the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud.

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006 and the Charities Statement of Recommended Practice.

In addition, we evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of

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management override of controls, and determined that the principal risks related to income recognition and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

• Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud

• Gaining an understanding of the internal controls established to mitigate risks related to fraud

• Discussing amongst the engagement team the risks of fraud

• Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is

located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities.

This description forms part of our auditor’s report.

Use of the audit report

This report is made solely to the charity’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed.

Nicola Wakefield (Dec 22, 2025 19:55:20 GMT)

Nicola Wakefield (Senior Statutory Auditor) for and on behalf of Forvis Mazars LLP Chartered Accountants and Statutory Auditor:

2[nd] Floor, 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey, SM1 4FS

Dated: ………………………………

22/12/2025

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WORLDSKILLS UK

STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating the Income and Expenditure Account

and Statement of Total Recognised Gains and Losses) FOR THE YEAR ENDED 31 MARCH 2025

Notes	Unrestricted Restricted 2025 2024
	Funds Funds Total Total
	£ £ £ £
INCOME FROM
Generated funds:
Income from investments 2	25,459 - 25,459 30,681
Income from charitable activities:
Using competitions to raise skill standards and promote excellence	1,147,332 6,950,000 8,097,332 7,939,806
Income in kind and donated facilities 9	- - - -
Total income EXPENDITURE ON Expenditure on Raising funds: Fundraising costs 4 Charitable activities by objective: Using careers advice events and skills competitions to raise skill standards and promote excellence 4 Total expenditure 4 Net expenditure for the year Fund balances brought forward Fund balances carried forward 16	1,172,791 6,950,000 8,122,791 7,970,487
	65,746 - 65,746 28,411 1,343,769 6,963,676 8,307,445 8,502,187
	1,409,515 6,963,676 8,373,191 8,530,598
	(236,724) (13,676) (250,400) (560,111)
	2,202,833 622,844 2,825,677 3,385,788
	1,966,109 609,168 2,575,277 2,825,677

The statement of financial activities has been prepared on the basis that all operations are continuing operations.

The notes on pages 22 to 33 form part of these financial statements

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WORLDSKILLS UK BALANCE SHEET

AS AT 31 MARCH 2025

	Note	2025	2024
		£	£
FIXED ASSETS
Intangible assets	10	267,380	461,690
Tangible assets	11	65,755	89,044
Investments	12	-	-
		333,135	550,734
CURRENT ASSETS
Debtors	13	1,263,887	1,746,852
Cash at bank		1,989,159	1,604,897
		3,253,046	3,351,749
CREDITORS: amounts
falling due within one year	14	(1,010,904)	(1,076,806)
NET CURRENT ASSETS		2,242,142	2,274,943
NET ASSETS		2,575,277	2,825,677
FUNDS
Restricted funds	15	609,168	622,844
Unrestricted funds	15	1,716,237	1,734,004
Designated funds	15	249,872	468,829
TOTAL FUNDS	16	2,575,277	2,825,677

Approved by the Board of Trustees and signed on their behalf by: -

Marion Plant OBE, FCGI

Chair of the Board of Trustees, WorldSkills UK

Dated: 19 December 2025

The notes on pages 22 to 33 form part of these financial statements

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WORLDSKILLS UK

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2025

2025	2024
£	£
Net cash inflow/(outflow) from operating activities (Note a) 399,483 Cash flows from investing activities Bank and other interest receipts 25,459 Purchase of tangible fixed assets (23,320) Purchase of intangible fixed assets (17,360)
	(591,644)
	30,681
	(91,809)
	(185,448)
Net cash used in investing activities (15,221)	(246,576)
Net increase/(decrease) in cash and cash equivalents 384,262	(838,220)
Cash and cash equivalents at the beginning of the reporting period 1,604,897 2,443,117
Cash and cash equivalents at the end of the reporting period 1,989,159 1,604,897

All cash and cash equivalents at the end of the reporting period relates to cash at bank and in hand

NOTES TO THE CASH FLOW STATEMENT

Note a: Reconciliation of expenditure to net cash flow from operating activities

	2025	2024
	£	£
Net expenditure for the year	(250,400)	(560,112)
Bank and other interest receipts	(25,459)	(30,681)
Depreciation of fixed assets	46,609	27,683
Amortisation of fixed assets	211,670	194,092
Decrease in debtors	482,965	575,312
(Decrease)/increase in creditors	(65,902)	352,685
Net cash inflow/(outflow) from operating	399,483	(591,644)
activities

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WORLDSKILLS UK

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2025

1. ACCOUNTING POLICIES

Charity information

WorldSkills UK is a private company limited by guarantee incorporated in England and Wales. The registered office is 52-54 St. John Street, London, England, EC1M 4HF25. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.

Basis of accounting

These financial statements have been prepared under the historical cost convention and in accordance with 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) (effective January 2019)", FRS 102 "The Financial Reporting standard applicable in the UK and Republic of Ireland" and the requirements of the Companies Act 2006.

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Basis of consolidation

The financial statements present information about the charitable company as an individual undertaking and not about its group. The charitable company has taken advantage of the exemptions provided by section 405 of the Companies Act 2006 not to prepare consolidated accounts as the subsidiary company is not material to the group.

Going concern

The Trustees have received written confirmation that the DfE expects to continue to provide grant funding for 2026-27 and therefore it is considered that the charity will have sufficient funds to continue its activities for a period of at least twelve months from the date these financial statements are approved.

In the event that a final funding agreement is not reached, the Trustees have reviewed the impact that this would have on the remaining operations of the charity, and have prepared cash flow forecasts, considering mitigating actions as required to reduce expenditure, which confirm that there is sufficient cash for the charity to cover its fixed costs for a period of at least twelve months from the date of approval of these financial statements.

Therefore, the Trustees continue to operate the going concern basis in preparing these financial statements.

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Critical accounting judgements and key sources of estimation uncertainty

In the application of the charitable company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Income in kind for equipment and materials donated or lent to support the running of the national finals of the skills competitions is valued at current market rates for purchase, where goods given to WorldSkills UK, or hire where goods are lent. Where there is no hire market for the equipment lent, the value is estimated at 15% of the full market purchase value. Income in kind for the development of digital careers training content is valued at the market cost of the development of comparable material.

The useful economic life of intangible assets is estimated to be 5 years.

There were no other specific judgments, estimates and assumptions that were critical to the preparation of these financial statements.

a) Income

Income is included in the Statement of Financial Activities (SoFA) when the Charity is legally entitled to the income and the amount can be quantified with reasonable certainty. Income received in advance of due performance under a contract is accounted for as deferred income until earned. Grant income is included when the related conditions for legal entitlement to the grant have been met. All other income is accounted for on an accruals basis.

b) Income in Kind

Income in kind is included in the Statement of Financial Activities (SoFA) where it has been possible to attribute a value to WorldSkills UK of the donation. The value to WorldSkills UK is based on the value that WorldSkills UK would have expended had the income in kind not been received. Income in Kind loans for the period of the event are valued at the appropriate hire cost if available. Where no value can be reasonably attributed to the loan it is excluded from the Statement of Financial Activities (SoFA).

In accordance with the Charities SORP (FRS 102), the general volunteer time is not recognised as a quantified value in the accounts.

Income in kind for the development of digital careers training content is valued at the market cost of the development of comparable material.

c) Government grants

Government grants are recognised in the period in which they are receivable to the extent the conditions of funding have been met. Where income is received in advance

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of entitlement of receipt its recognition is deferred and included in creditors and deferred income. Where entitlement occurs before income is received the income is accrued.

d) Expenditure

All expenditure is accounted for on an accruals basis. Charitable activities include costs of services and support costs. Costs of generating funds include fundraising. Non-staff costs not attributable to one category of activity are allocated or apportioned pro rata to the staffing of the relevant service. Governance costs are those associated with constitutional and statutory requirements.

e) Termination benefits

WorldSkills UK offers statutory levels of redundancy payments. In addition to any statutory redundancy pay due, pay in lieu of notice and payment for holidays accrued and not taken is also paid. Redundancy pay is not subject to deductions for Tax and National Insurance.

f) Fund accounting

Unrestricted funds represent those resources which may be used towards meeting any of the charitable objects of WorldSkills UK.

Restricted General funds are resources subject to specific restrictions imposed by funders or donors.

g) Intangible fixed assets

Assets are stated at cost less accumulated amortisation. Amortisation is charged on a straight-line basis over their useful lives, being 5 years.

h) Tangible fixed assets

Assets are stated at cost or, where donated, stated at valuation based on their value over their useful life less accumulated depreciation.

i) Depreciation

Depreciation is provided to write off the cost, less estimated residual values, of all fixed assets on a straight-line basis over their expected useful lives of 3 years.

Office equipment – 3 years straight line.

j) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discounts offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

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k) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

l) Creditors and provisions

Trade and other creditors (including accruals) payable within one year are initially measured at the transaction price and subsequently measured at amortised cost, being transaction price less any amounts settled.

Provisions are recognised when the charity has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and that obligation can be measured or estimated reliably.

m) Taxation

No provision is made for Corporation Tax, as the Charity is able to claim full statutory exemption subject to the proper application of all its charitable resources.

n) VAT

Income and expenditure are recorded exclusive of VAT, where appropriate, except where it is not permissible to reclaim input VAT or where partial exemption rules apply.

o) Pension costs

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. The annual contributions payable are charged to the Statement of Financial Activities.

p) Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight-line basis over the period of the lease.

**2. **	INVESTMENT AND OTHER INCOME
		2025	2024
		£	£
	Interest received	25,459	30,681

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3. NET (EXPENDITURE) FOR THE YEAR

3. NET (EXPENDITURE) FOR THE YEAR
	2025	2024
This is stated after charging:	£	£
Amortisation of intangible fixed assets	211,670	194,092
Depreciation	46,609	27,683
Auditor’s remuneration:
Fees payable to the charity’s auditor for the audit of the charity’s
annual accounts	23,015	21,925
Total office lease payments	168,494	155,703
Total other operating lease payments	5,000	5,000

4. ANALYSIS OF TOTAL EXPENDITURE

	Staff Support Direct 2025 2024
	Costs Costs Costs Total Total
	£ £ £ £ £
Cost of generating funds:
Fundraising costs	- - 65,746 65,746 28,411
Charitable Expenditure:
Costs of activities in furtherance of the
charity’s objectives: Using competitions to raise skill standards and promote excellence	3,174,436 807,010 4,280,984 8,262,430 8,463,332
Governance costs	- 45,015 - 45,015 38,855
Total expenditure	3,174,436 852,025 4,346,730 8,373,191 8,530,598

Expenditure on charitable activities was £8,373,191 (2024: £8,530,598) of which £6,963,676 (2024: £7,045,424 was restricted and £1,409,515 (2024: £1,485,174) was unrestricted.

5. SUPPORT COSTS

. SUPPORT COSTS
		Office	Governance	2025	2024
		Costs	Costs	Total	Total
	General
	£	£	£	£	£
Using competitions to raise skill
standards and promote excellence	222,444	584,566	45,015	852,025	833,396

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6. EMPLOYEES

6. EMPLOYEES
	2025 2024
	£ £
Staff costs consist of:
Wages and salaries	2,635,507 2,522,316
Social security costs	290,867 279,549
Pension costs	144,354 133,079
External staff costs	103,708 53,847
	3,174,436 2,988,791

The average monthly number of employees on average basis during the year was made up as follows:

p as follows:
	2025	2024
	No.	No.
Permanent contract	43	37
Fixed-term contract	8	12
	51	49
The number of employees whose emoluments exceeded £60,000 was:
	2025	2024
	No.	No.
£60,001 to £70,000	3	3
£70,001 to £80,000	2	3
£80,001 to £90,000	2	2
£120,001 to £130,000	1	1

The number of higher paid staff who contribute into a pension scheme is 8 (2024: 9), at a cost of £44,018 (2024: £41,270).

7. TRUSTEES’ REMUNERATION, EXPENSES and key management personnel

None of the members of the Board of Trustees received any remuneration during this year for their services as a trustee (2024: £Nil).

During the year, 5 Trustees (2024: 5) received reimbursements of personal travel and subsistence expenditure amounting to £2,576 (2024: £1,842).

The total Key Management Personnel (The Board, CEO and Directors) payroll costs during this year were £640,694 (2024: £635,746).

8. REDUNDANCY AND TERMINATION BENEFITS

WorldSkills UK offers statutory levels of redundancy payments. In addition to any statutory redundancy pay due, pay in lieu of notice and payment for holidays accrued and not taken is also paid. Redundancy pay is not subject to deductions for Tax and National Insurance.

Total amount of payments made for period: £17,265 (2024: £Nil).

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9. INCOME IN KIND

WorldSkills UK benefits greatly from the involvement and enthusiastic support of its many volunteers, details of which are given in our annual report. In accordance with FRS 102 and the Charities SORP (FRS 102), income in kind and the economic contribution of general volunteers is not recognised in the accounts.

10. INTANGIBLE FIXED ASSETS

	Software £ Total £
Cost
At 1 April 2024	1,104,923 1,104,923
Additions	17,360 17,360
At 31 March 2025	1,122,283 1,122,283
Amortisation
At 1 April 2024	643,233 643,233
Charge for the year	211,670 211,670
At 31 March 2025	854,903 854,903
Net book value
At 31 March 2025	267,380 267,380
At 31 March 2024	461,690 461,690

11. TANGIBLE FIXED ASSETS

	Equipment £ Total £
Cost
At 1 April 2024	435,461 435,461
Additions	23,320 23,320
At 31 March 2025	458,781 458,781
Depreciation
At 1 April 2024	346,417 346,417
Charge for the year	46,609 46,609
At 31 March 2025	393,026 393,026
Net book value
At 31 March 2025	65,755 65,755
At 31 March 2024	89,044 89,044

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12. INVESTMENTS

The Charity owns all of the issued ordinary share capital of its subsidiary, The Skills Show Ltd. This investment is included in the company financial statements at its historic cost of £nil (2024: £nil).

The subsidiary is a company registered in England and Wales at 52-54 St. John Street, London, England, EC1M 4HF and was dormant throughout the accounting period.

The subsidiary is not material for the purpose of giving a true and fair view. The charity has therefore taken advantage of exemption provided by section 405 the Companies Act 2006 not to prepare group accounts.

13. DEBTORS

	2025 2024
	£ £
Trade debtors	164,429 136,002
Rent deposit Prepayments and accrued income	30,158 1,069,300 23,708 1,587,142
	1,263,887 1,746,852

14. CREDITORS: amounts falling due within one year

	2025 2024
	£ £
Trade creditors	296,453 426,316
Other taxes and social security costs	462,936 492,480
Accruals and deferred income	250,574 156,809
Other creditors	941 1,201
	1,010,904 1,076,806
Movements on deferred income account in year: -
Contract receipts unearned as at 1 April	104,149 65,066
Amounts released in year	(103,749) (64,666)
Amounts received in year	118,166 103,749
Contract receipts unearned at 31 March	118,566 104149

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15. FUNDS

5. FUNDS
	Designated ….funds		Restricted ….funds		Unrestricted funds £ 1,734,004 1,172,791 (1,190,558)	Total Funds £ 2,825,677 8,122,791 (8,373,191) 2,575,277
	£		£
Balance at 1 April 2024	468,829		622,844
Income			6,950,000
Expenditure	(218,957)		(6,963,676)
Balance at 31 March 2025	249,872		609,168		1,716,237

Designated funds of £350,000 were set aside from unrestricted reserves in October 2021 to underwrite innovative activities essential to the future sustainability of WorldSkills UK, which include supporting the Centre of Excellence, investment in key technology to deliver against the strategy with reduced staffing levels and maintain a contingency to mitigate future organisational changes. The designated funds were spent over a period of three years from October 2021. In 2023-24, £203,000 was set aside to provide additional support to Centre of Excellence and acquire a new Customer Relations Management system, part of which was spent in 2024-25. During 2024-25, £30,000 was designated from unrestricted reserves to fund an external VAT review conducted by independent consultants.

Restricted funds are funds received subject to specific conditions imposed by the donor.

		£	£		£
Department for Education	422,069 6,700,000 (6,714,621) 407,448
NCFE	200,775	250,000	(249,055)		201,720
Balance at 31 March 2024	622,844 6,950,000 (6,963,676) 609,168

The Department for Education (DfE) grant supports WorldSkills UK to raise standards in technical education and skills training (TVET), working towards world class levels, through national and international competition-based training, workforce development in FE sector and careers activities that increase the prestige of TVET.

The NCFE grant supports Centre of Excellence which aims to mainstream excellence across the UK by developing a cohort of world-class educators, delivering global expertise and driving up standards, supporting the creation of a world-class education system.

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The carried forward funds have been committed to the competition registration system, the event management system, the skills hub and to continue the development of the Centre of Excellence.

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fund balances at 31 March 2025 are represented by:

Intangible fixed assets Tangible fixed assets Net current assets	Restricted funds Unrestricted funds Total funds £ £ £ 208,125 59,255 267,380 33,755 32,000 65,755 367,288 1,874,854 2,242,142
	609,168 1,966,109 2,575,277

17. PENSION

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity.

The pension cost charge represents contributions payable by the charity to the fund and amounted to £144,354 (2024: £133,079).

18. LEASE COMMITMENTS

The minimum commitments due under non-cancellable operating leases in the next year are:

	2025 2024 £ £ 151,323 39,894 116,037 -
Land and Buildings
On operating leases expiring
Within one year
Within 2 to 5 years
	267,360 39,894

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19. RELATED PARTY TRANSACTIONS

Marion Plant OBE, FCGI is Chair of the board of WorldSkills UK and Principal and Chief Executive of North Warwickshire and South Leicestershire College (NWSLC). During the year WorldSkills UK made sales to NWSLC of £nil (2024: £nil) and purchases of £27,630 (2024: £24,365). At the year end, there were no balances outstanding with NWSLC (2024: £nil).

Jonathan Peter Vincent is a trustee of the board of WorldSkills UK and Principal and Chief Executive of Glasgow Clyde College. During the year WorldSkills UK made purchases from Glasow Clyde College of £21,740 (2024: £15,840)

Mel Higgins is a trustee of the board of WorldSkills UK and Principal and Chief Executive and operating Officer of Northern College. During the year WorldSkills UK made purchases from Northen College of £19,275 (2024: £70).

Professor Sean Wellington is a Trustee of the Board of WorldSkills UK and former Provost - Deputy Vice- Chancellor of Middlesex University (resigned in 2024) During the year WorldSkills UK made purchases from Middlesex University of £31,830 (2024: £28,139).

Shane Rober Mann is a CEO and Founder of Education Scape Ltd. During the year WorldSkills UK made purchases from Education Scape Ltd of £22,145.

Rachel Wilson is a Trustee at Enginuity and EAL. During the year WorldSkills made sales to Enginuity for £17,000 and EAL for £10,000.

At the year-end nothing was owed to trustees in relation to expenses (2024: £nil).

20. ANALYSIS OF CHANGES IN NET FUNDS

	At 1 April 2024 £ Cash flows £ At 31 March 2025 £
Cash at bank and in hand	1,604,897 384,262 1,989,159
	1,604,897 384,262 1,989,159

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21. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024

Notes	Unrestricted Restricted 2024
	Funds Funds Total
	£ £ £
INCOME FROM
Generated funds:
Income from investments 2	30,681 - 30,681
Income from charitable activities:
Using competitions to raise skill standards and promote excellence	989,806 6,950,000 7,939,806
Total income	1,020,487 6,950,000 7,970,487
EXPENDITURE ON
Expenditure on Raising funds:
Fundraising costs 4	28,411 - 28,411
Charitable activities by objective:
Using careers advice events and skills competitions to raise skill standards and promote excellence 4	1,456,763 7,045,424 8,502,187
Total expenditure 4	1,485,174 7,045,424 8,530,598
Net income/(expenditure) for the year	(464,687) (95,424) (560,111)
Fund balances brought forward	2,667,520 718,268 3,385,788
Fund balances carried forward 16	2,202,833 622,844 2,825,677

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Audit completion report

WorldSkills UK– year ended 31 March 2025

November 2025

Contents

• 04 Executive summary

• 05 Significant findings

• 13 Internal control recommendations

• 15 Summary of misstatements

• 16 Appendix A – Independence

This document is to be regarded as confidential to MarineWorldSkills UKSociety & Sea Cadets. It has been prepared for the sole use of the Board of Trustees. No responsibility is accepted to any other person in respect of the whole or part of its contents. Our written consent must first be obtained before this document, or any part of it, is disclosed to a third party.

Strictly private and confidential

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Forvis Mazars LLP 2[nd] Floor 6 Sutton Plaza Sutton Court Road Sutton SM1 4FS

The Trustees, WorldSkills UK, 332, Third Floor, 25 Wilton Road, London, SW1V 1LW

November 2025

Ladies and Gentlemen,

Audit Completion Report – Year ended 31 March 2025

We are pleased to present our Audit Completion Report for the year ended 31 March 2025 for WorldSkills UK. The purpose of this document is to summarise our audit conclusions.

The scope of our work, including identified significant audit risks and other areas of management judgement, was outlined in our audit planning processes. We have reviewed our audit strategy and concluded that the original significant audit risks and other areas of management judgement remain appropriate.

We would like to express our thanks for the assistance of your team during our audit, especially Francis Chiwariro and Rozila Bansal. If you would like to discuss any matters in more detail, then please do not hesitate to contact me on [phone].

Yours faithfully

Nicola Wakefield Partner Forvis Mazars LLP

Forvis Mazars LLP – 2nd floor, 6 Sutton Plaza, Sutton Court Road, Sutton, SM1 4FS Tel: [phone] – Fax: [phone]– www.mazars.co.uk

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1. Executive summary

Principal conclusions and significant findings

Our audit has been conducted in accordance with International Standards of Auditing (UK) and means we focus on audit risks that we have assessed as resulting in a higher risk of material misstatement.

In section 2 of this report we have set out our conclusions and significant findings from our audit. This section includes our conclusions on the audit risks and areas of management judgement of which the principal ones were:

We have substantially completed our audit in respect of the financial statements for the year ended 31 March 2025 and expect to issue a clean and unmodified audit opinion subject to the following points:

• Final post balance sheet events review to the date of signing

• Letter of confirmation from DfE, to confirm funding to WorldSkills UK beyond 31 May 2026

• Signed Representation letter

Significant risks:

• Management override of controls;

• Income recognition; and

• Fund accounting.

Key management judgements:

• Depreciation and amortisation; and

• Accrued expenditure.

Misstatement and internal control recommendations

Section 3 sets out internal control recommendations and section 4 sets out audit misstatements.

Internal control Status and audit opinion Executive summary Significant findings recommendations misstatementsSummary of Appendices

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2. Significant findings

Set out below are the significant findings from our audit. These findings include:

• our audit conclusions regarding significant risks and key areas of management judgement outlined in the Audit Strategy Memorandum;

• our comments in respect of the accounting policies and disclosures that you have adopted in the financial statements. On page 9 we have concluded whether the financial statements have been prepared in accordance with the financial reporting framework and commented on any significant accounting policy changes that have been made during the year; and

• any significant difficulties we experienced during the audit.

Significant risks

1. Management override of controls

Description of the risk

In all entities, management at various levels within an organisation are in a unique position to perpetrate fraud because of their ability to manipulate accounting records and prepare fraudulent financial statements by overriding controls that otherwise appear to be operating effectively. Due to the unpredictable way in which such override could occur, we consider there to be a risk of material misstatement due to fraud and thus a significant risk on all audits.

How we addressed this risk

We addressed this risk through performing audit work over:

• Accounting estimates impacting amounts included in the financial statements;

• Consideration of identified significant transactions outside the normal course of business; and

• Journals recorded in the general ledger and other adjustments made in preparation of the financial statements.

Audit conclusion

We did not identify any evidence of management override of controls.

Internal control Significant findings recommendations misstatementsSummary of Appendices

Executive summary

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2. Significant findings (continued)

2. Income recognition

Description of the risk

There is a risk of fraud in the financial reporting relating to income recognition due to the potential to inappropriately record income in the wrong period. Due to there being a risk of fraud in income recognition we consider it to be a significant risk on all audits.

How we addressed this risk

We addressed this risk through performing audit work over:

• Recognition of income in the correct accounting period;

• Recognition of income in accordance with the charity’s accounting policies.

Audit conclusion

We did not identify any evidence of incorrect income recognition.

Executive summary

Internal control Significant findings recommendations misstatementsSummary of Appendices

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2. Significant findings (continued)

3. Fund accounting Description of the risk

There is a risk that income received has restrictions imposed by a third party and therefore should be recorded as restricted income in the SOFA. The related expenditure must be allocated against these restricted funds and any remaining funds at the period end must be carried forward within restricted funds.

How we addressed this risk

We reviewed a sample of income items to ensure that any restrictions had been identified and adhered to, and that the income had been appropriately classified. We reviewed the allocation of expenditure between funds to ensure that only qualifying expenditure was charged against restricted funds.

==> picture [471 x 32] intentionally omitted <==

Audit conclusion

Based on the testing performed, we did not identify any inappropriate classification of income or expenditure and no issues were identified in respect of restricted and unrestricted funds.

Executive summary

Internal control Significant findings recommendations misstatementsSummary of Appendices

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2. Significant findings (continued)

Key areas of management judgement

1. Depreciation and amortisation

Description of the management judgement

Depreciation and amortisation is charged to write off the cost of the tangible and intangible fixed assets over their useful lives.

How our audit addressed this area of management judgement

We reviewed depreciation and amortisation charges to ensure they were reasonable and agree with the charity’s policy. We carried out proof in total testing in order to ensure that these charges were calculated correctly.

Audit conclusion

A review of the depreciation and amortisation policies and proof in total tests were carried out. Depreciation and amortisation rates are considered to be appropriate, in line with rates used in the sector and have been correctly applied in the financial statements. Management also confirmed that all intangible fixed assets are still operating as intended. 2. Accrued expenditure

Description of the management judgement

Accrued expenditure ensures that expenditure is allocated to the correct accounting period.

How our audit addressed this area of management judgement

We tested the calculations of material accruals to ensure that costs are allocated to the correct accounting period. We reviewed post year end payments and invoices to ensure that accruals were not understated.

Audit conclusion

Our testing did not identify any issues in relation to accruals.

Internal control Significant findings recommendations misstatementsSummary of Appendices

Executive summary

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2. Significant findings (continued)

Qualitative aspects of the entity’s accounting practices

We have reviewed the charity’s accounting policies and disclosures and concluded that they comply with UK GAAP, the Charities SORP (FRS 102), the Charities Act 2011, and other relevant legislation.

Significant difficulties during the audit

During the course of the audit we did not encounter any significant difficulties and we have had the full co-operation of management. We would like to pass on our thanks to Francis Chiwariro and Rozila Bansal for their co-operation and assistance with the audit process.

Executive summary

Significant findings

Summary of misstatements Appendices

Internal control recommendations

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Significant matters discussed with management

Going Concern

We note that the current funding from DfE runs to 31 March 2026, and that no further funding has been guaranteed beyond that date. We have been advised that the Trustees should receive a letter of comfort from DfE in due course, to confirm funding for the year to 31 March 2027. Once this has been received, this would provide the trustees with the comfort needed so the accounts can be prepared and signed on a going concern basis and for us to then sign our audit report confirming this. We look forward to seeing the letter of comfort in due course.

VAT

During the previous year, WorldSkills had a VAT review. The total estimated liability in the accounts for the year ended 31 March 2024 was £385k including interest. We note that WorldSkills sought professional advice this year.

Your external advisers RSM, advised that in addition to the fact that HMRC can only assess VAT going back a maximum of four years the later of the two also applies:

1. Two years after the end of the accounting period, or

2. One year after all relevant facts are made available to HMRC.

This places WorldSkills in the following position:

• One of the four years covered by the ECN is now out of time due to the four-year statutory limit.

• Two additional years are also out of time, as more than one year has passed since the ECN was submitted.

• This leaves a likely liability for one year (2023-24) (under point 1), estimated at £140k.

Executive summary

Significant Internal control Summary of findings recommendations misstatements Appendices

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Significant matters discussed with management

VAT (continued)

We responded to note your assumption that HMRC will not be raising the assessment in respect of earlier years based on the one year time limit, however as RSM mentioned in their email correspondence (our VAT specialist also raised the same point), this is not guaranteed, and not without risk, especially as HMRC requested clarification/information earlier this year.

We noted your proposal to reduce the provision to only reflect one year’s liability, however there is still the potential risk of HMRC challenging this position, which may then result in amounts being payable for earlier years.

From the correspondence with RSM, they did not appear to have provided any advice on the amount they would recommend including in the accounts as a provision. Given the significance of the provision, we recommended that you go back to RSM and seek their advice as to what they felt was the likelihood of HMRC going back on each of the years and therefore what they would recommend is included as a provision in respect of these years.

You had assumed a provision just in respect of the year to 31 March 2024, and writing back the provision related to all earlier periods, so we recommended that you sought RSM’s advice on whether this approach was reasonable or whether they would suggest some level of provision remained in the accounts in respect of the earlier years.

We note RSM’s advice as follows:

• In regards to penalties, any penalty levied would not increase over time, so would remain unchanged from 31 March 2024 to 31 March 2025. We should say that as an un-prompted disclosure, and given the circumstances (Covid etc), we would hope that penalties would be mitigated down to zero.

• Interest works a little differently as this is charged on the outstanding VAT balance. The interest accrued would continue to accumulate so it would have increased accordingly for the 12 months to 31 March 2025. It is difficult to calculate the exact amount of interest due, but from 6 April 2025 the interest rate jumped from Bank of England Base Rate +2.5% to Base Rate + 4%.

Significant Internal control Summary of Executive summary findings recommendations misstatements Appendices

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Significant matters discussed with management

VAT (continued)

Following advice from RSM, we note that you have increased the provision to the full amount given the potential for HMRC to come back in respect of the earlier years. This has been reduced by an amount of £26k in respect of VAT related to the period up to 30 September 2021.

We reviewed these workings, and discussed them with our VAT consultant, and our comments were as follows:

• We would expect to see an additional interest calculation for the most recent year (ultimately interest will be charged up to the point where the payment is made). Rates are currently linked to the Bank of England base rate plus 4% and so as of August 27 the HMRC late payment interest rate is 8%. The rate used in your calculations of 4% does not appear to be correct.

• The position regarding penalties will not be certain until the matter is concluded and whilst you are hopeful that this may be mitigated to zero this cannot be relied upon.

We consider the difference in the interest rate to be immaterial (the difference of £7k is noted as an unadjusted misstatement) and therefore we are content that the VAT liability as at 31 March 2025, is not materially misstated. We also note that you have not accrued for any potential penalties, which are most likely to be immaterial.

We would recommend that if a response is received from HMRC prior to signing, that the liability in the accounts should be revisited to ensure that the liability at the Balance Sheet date is still considered to be reasonable.

Executive summary

Significant Internal control Summary of findings recommendations misstatements Appendices

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3. Internal control recommendations

The purpose of our audit was to express an opinion on the financial statements. As part of our audit we have considered the internal controls in place relevant to the preparation of the financial statements in order to design audit procedures to allow us to express an opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of internal control or to identify any significant deficiencies in their design or operation.

The matters reported are limited to those deficiencies and other control recommendations that we have identified during our normal audit procedures and that we consider to be of sufficient importance to merit being reported. If we had performed more extensive procedures on internal control we might have identified more deficiencies to be reported or concluded that some of the reported deficiencies need not in fact have been reported. Our comments should not be regarded as a comprehensive record of all deficiencies that may exist or improvements that could be made.

Our findings and recommendations are set out below. We have assigned priority rankings to reflect the importance that we consider each poses to your organisation and, hence, our recommendation in terms of the urgency of required action. The matters arising fall into the following categories:

Priority	Description	Number
1 (high)	In our view, there is potential for financial loss, damage to reputation or loss of information. This may have implications for the achievement of strategic objectives. The recommendation should be taken into consideration by management immediately.	-
2 (med)	In our view, there is a need to strengthen internal control or enhance efficiency. The recommendations should be actioned in the near future.	-
No matters	were identified in 2019/20 and the two points from the previous year have been fully res	olved.
3 (low)	In our view, internal control should be strengthened in these additional areas when practicable.	-

Internal control Executive summary Significant findings recommendations misstatementsSummary of Appendices

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4. Summary of misstatements

We confirm that there were misstatements identified during the course of the audit, above the level of trivial, either which have been adjusted or which remain unadjusted.

Summary of adjusted misstatements

Prepayments

Expenses

SOFA Balance Sheet Dr Cr Dr Cr £ £ £ £ 119,529 119,529

Being recognition of prepayments for WorldSkills competition made in 24/25 for activities in 25/26.

Summary of unadjusted misstatements

	SOFA		Balance	Sheet
	Dr	Cr	Dr	Cr
	£	£	£	£
Prepayments			8,144
Expenses		8,144

Being prepaid invoices before the Balance Sheet date, related to 2025/26 expenses.

expenses.
Dr Debtors		7,432
Cr Creditors			7,432
Being debit balances included within creditors.
Expenses	7,051
VAT liability			7,051
Being accrued interest	in the year to 31 March 2025.

Executive summary

Significant Internal control Summary of findings recommendations misstatements Appendices

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Appendix A

Independence

As part of our ongoing risk assessment, we monitor our relationships with you to identify any new actual or perceived threats to our independence within the regulatory or professional requirements governing us as your auditors.

We can confirm that no new threats to independence have been identified since the planning stage of the audit and therefore we remain independent.

Executive summary of auditStatus of the financial Overall review statements approachAudit Significantfindings recommendationsInternal control misstatementsSummary of Appendices

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Mazars is an internationally integrated partnership, specialising in audit, accountancy, advisory, tax and legal services*. Operating in over 90 countries and territories around the world, we draw on the expertise of 40,400 professionals – 24,400 in Mazars’ integrated partnership and 16,000 via the Mazars North America Alliance – to assist clients of all sizes at every stage in their development.

*where permitted under applicable country laws

The contents of this document are confidential and not for distribution to anyone other than the recipients. Disclosure to third parties cannot be made without the prior written consent

of Mazars LLP

© Mazars 2020

www.mazars.com