**Registered number: 02640936 Charity number: 1004087**
## **SKILLS AND EDUCATION GROUP**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **SKILLS AND EDUCATION GROUP**
## **CONTENTS**
||Page|
|---|---|
|**Reference and Administrative Details of the Charity, its Trustees and Advisers**|1|
|**Trustees' Report**|2 - 10|
|**Independent Auditors' Report on the Financial Statements**|11 - 14|
|**Consolidated Statement of Financial Activities**|15|
|**Consolidated Balance Sheet**|16 - 17|
|**Charity Balance Sheet**|18 - 19|
|**Consolidated Statement of Cash Flows**|20|
|**Notes to the Financial Statements**|21 - 46|
**SKILLS AND EDUCATION GROUP**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2025**
|**Trustees**|S C Alton|
|---|---|
||G Clipson MBE (resigned 31 January 2025)|
||P A Eeles (resigned 8 April 2025)|
||V A Hancock (resigned 18 October 2024)|
||J Smith|
||Y Y Mellor (resigned 15 November 2024)|
||A G Stott (resigned 10 January 2025)|
||E A Barrett OBE|
||Y Koursis OBE|
||K J Merry (resigned 13 April 2026)|
||R J Nicholls|
||D Poole|
||Dr R J Gater (resigned 30 October 2024)|
||Dr G Scott (appointed 7 February 2025)|
||J F Scorer (appointed 7 February 2025, resigned 16 October 2025)|
||J W Kerry, Chair (appointed 16 October 2025)|
|**Company registered**
**number**
02640936
**Charity registered**
**number**
1004087
**Registered office**
Robins Wood House
Robins Wood Road
Aspley
Nottingham
NG8 3NH
**Company Secretary**
S Nouman (appointed 26 March 2025)
T De'Ath (resigned 17 July 2025)
**Chief Executive Officer**
Y Y Mellor (Resigned 28 February 2026 – Interim Chief Executive Officer)
E Beal (Appointed 12 January 2026)
**Independent auditors**
Streets Audit LLP
Tower House
Lucy Tower Street
Lincoln
LN1 1XW
**Bankers**
Natwest
536 Valley Road
Nottingham
NG5 1FL
**Solicitors**
Bates Wells
10 Queen Street
London
EC4R 1BE||
Page 1
## **SKILLS AND EDUCATION GROUP**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2025**
The Trustees present their annual report together with the audited financial statements of the Charity for the year fromyear 1 September 2024 to 31 August 2025. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
## **Objectives and activities**
## **a. Policies and objectives**
The Charity provides a range of service in furtherance of its charitable objective to support “the advancement of skills and education to improve the lives of individuals”. These services include:
- awarding and assessment services and qualifications regulated by CCEA (Northern Ireland), Ofqual, Qualification Wales and SQA (Scotland) on a national and international level
- awarding Access to HE Diplomas regulated by the Qualifications Approval Agency (QAA)
- awarding and assessment services for non-regulated skills and education programmes on a national and international level
- delivering end-point-assessment (EPA) services approved and regulated by the Institute for Apprenticeships and Technical Education (IfATE) and Ofqual
- the development and delivery of professional development programmes to meet the training needs of teaching and non-teaching staff across the further education sector
- customised training for colleges and training providers developing programmes to support and develop the professionalisation of the further education sector
- delivery of project-based activities to improve individuals’ knowledge on labour exploitation and modern slavery
- local, regional and national stakeholder engagement to inform and support policy developments and implementation
- championing social mobility, supporting learners with grants and support through a Foundation
The Charity’s strategic aims adopted in support of these objectives are identified by an annual strategic planning process culminating in “Ambition 2025” setting out the strategy and direction of the charity to August 2025. This is supported by an annual process which sets out clear strategic targets for in year achievement. Plans are agreed and monitored by the Board of Trustees.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
## **Achievements and performance**
## **a. Main achievements of the Charity**
## **Achievements and performance delivering public benefit**
The Charity is dedicated to making a positive impact on people's lives through education and skills-based training. It is guided by values of ethics, professionalism, teamwork, and a commitment to achieving educational, economic, and social advancement for all. The Charity, through its work, provides financial support to learners, access to professional development programmes, and other initiatives to support teaching, learning, assessment, and governance across the further education sector.
Page 2
## **SKILLS AND EDUCATION GROUP**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **Achievements and performance (continued)**
## **Professional Development**
The Charity continues to provide high quality professional development programmes, networks, and conferences all of which aim to support the sector’s workforce. The range of services provided is designed to enable the sector, and the staff that work within it, to enhance the lives of young people, adults, and the communities our members and non-members serve.
Professional development events were attended by participants in the UK and internationally. The increasing demand for in-house/bespoke training continues and events were tailored to meet this demand.
Work to support minority communities also continues in collaboration with the Foreign, Commonwealth and Development Office, Gangmasters and Labour Abuse Authority and the Home Office. This work focused on increasing awareness within the Romanian community in the UK of their workers’ rights under UK law to prevent labour exploitation.
## **Skills and Education Group Foundation**
The Charity’s Foundation champions social mobility by supporting learners and education providers through grants, advocacy, and recognition. It provides financial support to learners, staff, and providers, with the goal of expanding access to education, accelerating social mobility and building a fairer society. Through the Foundation’s Learner Grants, Action Research Grants and Resource and Facilities Grants.
The Foundation’s Learner Grant helps individuals to overcome social barriers and advance their skills and education, these grants are for applicants who demonstrate a commitment and willingness to achieve but face financial and/or social adversity.
Grants help provide learners with digital equipment like laptops and tablet devices, transportation costs, educational resources and more. This enables learners to advance in their studies and prevents them from being excluded and at a disadvantage in comparison to their peers.
The Charity is committed to equality, diversity, and inclusion, promoting widening participation and supporting learners from underrepresented backgrounds. This commitment is embedded within its policies, practices, and provider expectations. In 2025 Skills and Education Group received the Multicultural Apprenticeship Employer of the Year award, for its commitment to equity and inclusion.
## **Awarding Services**
The Charity’s awarding services are delivered through Skills and Education Awards and BIIAB Qualifications Limited (BIIAB). Skills and Education Group Awards is a leading national awarding organisation with a longestablished reputation for providing high quality support and services to the education sector regulated by CCEA, Ofqual and Qualifications Wales.
BIIAB is an awarding and end-point assessment organisation of choice for work-based learning providers, employers, and the further education sector with a focus on licence to practice qualifications and the hospitality sector. BIIAB is regulated by CCEA, Ofqual, Qualifications Wales and SQA.
Skills and Education Group Awards portfolio continues to offer qualifications across a range of sectors. All new qualifications are developed in partnership with employers to ensure they meet industry needs and align to new government reforms.
Aside from qualification delivery, Skills and Education Group Awards and BIIAB continue to grow their end-point assessment portfolio.
Skills and Education Group Access continues to have a strong social purpose to recognise achievement,
Page 3
## **SKILLS AND EDUCATION GROUP**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **Achievements and performance (continued)**
particularly for those who have benefitted least from their educational experiences, through its work it supports the needs of individuals, providers, businesses, and communities by enabling progression into higher education through Access to HE Diplomas.
## **b. Fundraising activities and income generation**
The charitable group does not carry out any significant fundraising activities.
## **Financial review**
## **a. Going concern**
At the year end, in light of the Group’s operational circumstances, the Trustees considered it necessary to undertake a detailed assessment as to whether the Group and its subsidiary entities can continue to operate for the foreseeable future.
The past year presented significant challenges; however, following appropriate enquiries, the Trustees have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. As a result, the Trustees continue to adopt the going concern basis in preparing the financial statements. Further information on the adoption of the going concern basis is provided in the accounting policies.
This conclusion is supported by the following factors:
- Following the year end, under new leadership, a number of strategic operational and financial decisions have been taken to course-correct and stabilise the Group’s activities;
- The organisation is well positioned, with sufficient resources secured and a clear strategic plan in place to mitigate and navigate the challenges ahead;
- The Trustees have reviewed the charity and Group’s financial position, including the level of reserves held, post year-end performance, and projected income and expenditure for a period of at least 12 months from the date of approval of these financial statements. Based on these forecasts, which indicate a return to positive EBITDA, the Trustees are confident that the charity remains a going concern.
## **b. Reserves policy**
It is the policy of the Charity that unrestricted funds which have not been designated for a specific purpose should be maintained at a level necessary to provide a contingency to support day-to-day business activities in the event of reduced income and provide a strategic fund to develop and grow the Charity. Trustees also wish to build reserves to fulfil a Group-wide objective to support social mobility.
In line with best practice guidance, Trustees review the reserves policy each year and confirm that this level of reserve has been maintained.
It is the Charity’s policy to work to building and maintaining reserves to:
- support the short, medium and long-term objectives of the Charity and its subsidiary charities
- re-invest any surplus funds to support, develop and expand the delivery of high-quality services
- re-invest any surplus funds to support activities that enable social mobility and provide a public benefit
- maintain sufficient reserves that are readily realisable to sustain operations as and when required
- cover deficits, when arising, from general reserves
- mitigate the risks of unforeseen challenges, emergencies or other unexpected requirement for funds
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## **SKILLS AND EDUCATION GROUP**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
- maintain designated funds that recognise funds that are to be used for a specific purpose
- cover statutory obligations to close and wind-up the charitable Charity’s affairs in an orderly manner, when required.
Unrestricted funds at the end of the year were £1,814,674 (2024: £2,555,049), with free reserves which exclude fixed assets and are stated before creditors and liabilities falling due after more than one year in a deficit position of £890,353 (2024: £179,660 deficit).
The Trustees recognise that the Charity’s current level of free reserves has reduced, reflecting the financial performance during the year and the planned use of reserves to support the continued delivery of the Charity’s activities. Trustees consider that this use of reserves has been appropriate in the context of the Charity’s objectives. Trustees continue to keep the financial position under review and are confident that the measures in place will strengthen the level of free reserves over time.
|**Reserve**|**Purpose**|**Target Amount**|
|---|---|---|
|Contingency|•Sustain business operations
•Cover deficits
•Mitigate the risks of unforeseen
challenges and/or emergencies
•Cover statutory obligations|£1,400,000|
|Strategic|•Support short, medium and
long- term objectives
•Support growth
•Invest in research and
development for new products
and services
•Infrastructure development to
support strategic growth including IT
infrastructure and applications|£500,000|
|Social Mobility|•Re-invest surplus funds to support
social mobility and provide public
benefit|£140,000|
|Designated Pension Fund|•Designated fund recognising local
government pension scheme deficit|£Nil - per actuary valuation|
|Designated Fund - Third Party
Contracts|•Funds for a designated purposed
defined by contractual agreements
with third parties (project-based
activities)|£100,000|
Page 5
## **SKILLS AND EDUCATION GROUP**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **c. Principal risks and uncertainties**
Trustees remain aware of the educational and political environment in which the Charity operates and recognise the challenges facing providers in the further education sector.
Key risks to the Charity are:
- A fast-changing political environment that has an impact on education policy and funding to support this
- • Regulatory changes and a failure to respond to these in the way that is needed to ensure continuing compliance
- Failure to appropriately manage and store personal data leading to a data breach under the General Data Protections regulations.
Trustees are satisfied that the systems and review processes are in place to mitigate and manage the risks. Strategic risks are managed and monitored through risk registers; one for each of the subsidiaries within the Group. Risk registers are reviewed and updated by the Senior Leadership Team monthly and further reviewed by Trustees quarterly.
Risk registers are rated on a weighted likelihood and impact scale based on Charity Commission Guidance.
## **d. Financial performance and position**
The Charity suffered a significant deficit of £740,375 (2024: £2,239,803 deficit), after taking into account gains and losses on investments, and actuarial losses on the pension scheme liability.
Total income was £6,869,279 (2024: £6,970,347) and total expenditure was £7,615,315 (2024: £8,723,573) and reflects the increased costs during the year of servicing project activities, including the distribution of funds to FE providers enabling them to develop new approaches to teaching, learning and assessment.
Staff costs for the year were £3,806,718 (2024: £3,726,682). Salaries and associated costs remain the primary cost to the Charity.
Net assets at the year end were £1,814,674 compared with £2,555,049 at 31 August 2024.
## **Structure, governance and management**
## **a. Constitution**
The organisation is a charitable company limited by guarantee, which was set-up on 27 August 1991.
The company was set-up under a Memorandum of Association which established the objectives and powers of the charitable company and is governed under it's Articles of Association. Its charitable objective is “the advancement of skills and education to improve the lives of individuals”.
Skills and Education Group is the parent charitable company of the group, which includes:
- Skills and Education Group Awards, a charitable company limited by guarantee: Company Number 04117784 Charity Number 1086947
- Skills and Education Group Access a charitable company limited by guarantee: Company Number 03773914 Charity Number 1088839
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## **SKILLS AND EDUCATION GROUP**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **Structure, governance and management (continued)**
- BIIAB Qualifications Limited, a company limited by shares: Company Number 10054831
The Skills and Education Group delivers its products and services through a brand structure that maintains and protects the profile and reputation of the Charities/companies within its structure.
## **b. Methods of appointment or election of Trustees**
There was seven changes to the Board during the year:
- G Clipson MBE resigned on 31 January 2025
- P A Eeles resigned on 08 April 2025
- V A Hancock resigned 18 October 2024
- A G Stott resigned on 10 January 2025
- Dr R J Gater resigned on 30 October 2024
- Dr G Scott appointed on 07 February 2025
- J F Scorer appointed on 07 February 2025, resigned 16 Oct 2025
- A Blackman appointed 16 Oct 2025
- J Kerry appointed 16 Oct 2025
- K J Merry resigned 13 April 2026
Trustees are recruited in accordance with the Articles of Association (revised, adopted 12 October 2021) section 18 – 21 which covers elected, co-opted, and subsidiary representative Directors.
All newly appointed Trustees complete a skills audit to ensure a balance of skills, knowledge, and experiences to support the development of the Charity. Trustee recruitment reflects ongoing and future skills and knowledge needs.
## **c. Organisational structure and decision-making policies**
The Board of Trustees meets four times a year. Trustees:
- support the Chief Executive and Senior Leadership Team (SLT) to determine the strategic direction of the Charity and review annual strategic plans, business plans and Key Performance Indicators.
- approve annual budgets, receive and review quarterly management accounts to monitor and challenge performance
- review and monitor the strategic risk register to ensure that the appropriate controls are in place to mitigate risks
- ensure that appropriate governance review mechanisms are in place and that performance is reviewed and that Charity Commission guidance is followed.
The Chairs and Chief Executive meet four times a year, which enables the Chairs to have a collective and strategic oversight of the Charity. The Chairs of the Charity, Skills and Education Group Access, Skills and Education Group Awards and BIIAB Qualifications Limited are members of this Group.
The Group meets ahead of quarterly Board of Trustees meetings and provides a structure for the Chairs to review and monitor:
- the performance of the Chief Executive and the Senior Leadership Team
- financial performance for the Charity and take a holistic view of all entities within the Group structure
- performance against strategic and business plans the Charity and all other entities
- identify opportunities for growth and the approach that may be taken to progress these
- determine longer-term strategic direction to help shape plans and proposals for all Trustees to consider.
Page 7
## **SKILLS AND EDUCATION GROUP**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **Structure, governance and management (continued)**
The Chief Executive is a Trustee of the Skills and Education Group, an appointment made under article 20 of the Skills and Education Group Articles.
Day-to-day management of the Charity is delegated to the Chief Executive who is supported by a Deputy Chief Executive.
The Executive is supported by a Senior Leadership Team (SLT), who support the Chief Executive and Deputy Chief Executive with operational and strategic matters. The Senior Leadership Team meets on a weekly basis, with an extended monthly meeting which focuses on overall Group strategy, finance, and HR matters.
A Senior Management Team (SMT) in addition to SLT meets monthly focusing on operational and departmental matters across the Group. The SMT is chaired by the Deputy Chief Executive and comprises of all SLT members, and Heads of services and functions from across the Skills and Education Group.
In addition to SMT, a monthly Scrutiny Group is held. This meeting is attended by the Executive and SLT. The meeting is chaired by the Deputy Chief Executive and is used to formerly review regulatory needs across all awarding functions within the Group.
The Deputy Chief Executive acts as the Data Protection Officer across the Group and is supported by members of the Senior Leadership Team.
## **d. Policies adopted for the induction and training of Trustees**
Newly appointed Trustees receive an induction under the direction of the Chief Executive. This normally includes an introductory visit to Robins Wood House where there is an opportunity to meet with key staff to gain a detailed understanding of the Charity and the subsidiaries within this.
Trustees also complete a declaration of interest record and skills audit on appointment. Declarations are noted on the Register which is reviewed and updated on an annual basis. Trustees are also asked to state any interests at the start of each Board meeting.
## **e. Pay policy for key management personnel**
Remuneration for the Chief Executive is determined by the Chairs of the Skills and Education Group and subsidiaries. The Chief Executive determines the remuneration for all staff, including the Deputy Chief Executive and Senior Leadership Team.
All annual cost of living pay awards for staff are subject to recommendation to and approval of the Board of Trustees.
## **f. Financial risk management**
The Trustees have assessed the major risks to which the Group and the Charity are exposed, in particular those related to the operations and finances of the Group and the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Page 8
## **SKILLS AND EDUCATION GROUP**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **Plans for future periods**
Trustees continue to support “Ambition 2025”, challenging assumptions and using their skills and knowledge to define objectives and associated targets. Ambition 2025 is a strategic plan that articulates ten key priorities that will take the Charity forward. This redefined the Charity’s purpose, mission, and vision to reflect the expanded Group and the services that this now provides:
## **Purpose:**
1. To support the development and delivery of further education and skills providers and their staff
2. Champion and support the social impact of the further education and skills sector
3. To develop and award industry relevant, high-quality qualifications, accreditations and end-point assessments
4. To be a national leader in Access to HE, awarding high quality Access to HE Diplomas that enable learners to progress into further study and/or employment.
## **Mission:**
The advancement of skills and education to improve the lives of individuals.
## **Vision:**
To provide high-quality services centred on collaboration, responsiveness, and diversity, supporting our members and customers to positively impact on the learners, communities, and sectors they serve to achieve their full potential, no matter what their age, background or ability.
The plans set annual key performance indicators in the context of a longer-term objectives:
- To see a growth in membership
- Increase the number of people participating in professional development events
- An increase in the uptake of grants to learners awarded through the Group’s Foundation
- Raise awareness of the charities work, through its Foundation, in widening participation and social mobility
- Grow the number of learners benefiting from a certificate form at least one of the charity’s awarding brands
- Grow the collective awarding share
- Ensure that a surplus is generated
- Ensure good staff engagement and satisfaction.
Page 9
## **SKILLS AND EDUCATION GROUP**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025**
## **Statement of Trustees' responsibilities**
The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, 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 of the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) 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 Group will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity 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 Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditors**
Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information.
Approved by order of the members of the board of Trustees and signed on their behalf by:
................................................
**J W Kerry** (Chair of Trustees)
Date: 30 April 2026
Page 10
## **SKILLS AND EDUCATION GROUP**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP**
## **Opinion**
We have audited the financial statements of Skills and Education Group (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 August 2025 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 31 August 2025 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent charitable company'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.
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## **SKILLS AND EDUCATION GROUP**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP (CONTINUED)**
## **Other information**
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our 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.
## **Opinion 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 Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the Trustees' Report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company 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 trustees**
As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company'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 Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
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**SKILLS AND EDUCATION GROUP**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP (CONTINUED)**
## **Auditors' 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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, Charities Act 2011, Ofqual and Qualifications Wales regulations, Council for the Curriculum, Examinations & Assessment (CCEA) regulations, employment law, General Data Protection Regulation (GDPR), Health & Safety and taxation legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance; and
- enquiring of management as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.
Page 13
## **SKILLS AND EDUCATION GROUP**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP (CONTINUED)**
Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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 Auditors' Report.
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
## **Robert Anderson BSc FCA (Senior Statutory Auditor)**
for and on behalf of
## **Streets Audit LLP**
Tower House Lucy Tower Street Lincoln LN1 1XW Date: 28 May 2026
Page 14
## **SKILLS AND EDUCATION GROUP**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2025**
|**Note**
**Income from:**
Charitable activities
4
Other trading activities
5
Investments
6
Other income
7
**Total income**
**Expenditure on:**
Raising funds
Charitable activities
9
**Total expenditure**
**Net expenditure before net gains on investments**
Net gains on investments
**Net movement in funds before other recognised**
**gains/(losses)**
**Other recognised gains/(losses):**
Actuarial gains/(losses) on defined benefit pension
scheme liability
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2025**
**£**
**3,873,209**
**2,951,278**
**173**
**44,619**
**6,869,279**
**3,102,206**
**4,512,929**
**7,615,135**
**(745,856)**
**5,481**
**(740,375)**
**-**
**(740,375)**
**2,555,047**
**(740,375)**
**1,814,672**|**Total**
**funds**
**2025**
**£**
**3,873,209**
**2,951,278**
**173**
**44,619**
**6,869,279**
**3,102,206**
**4,512,929**
**7,615,135**
**(745,856)**
**5,481**
**(740,375)**
**-**
**(740,375)**
**2,555,049**
**(740,375)**
**1,814,672**|_Total_
_funds_
_2024_
_£_
_3,721,001_
_3,162,229_
_14,863_
_72,254_
_6,970,347_
_3,772,107_
_4,951,466_
_8,723,573_
_(1,753,226)_
_16,423_
_(1,736,803)_
_(503,000)_
_(2,239,803)_
_4,794,852_
_(2,239,803)_
_2,555,049_|
|---|---|---|---|
The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 21 to 46 form part of these financial statements.
Page 15
## **SKILLS AND EDUCATION GROUP REGISTERED NUMBER: 02640936**
## **CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2025**
|**Note**
**Fixed assets**
Intangible assets
14
Tangible assets
15
**Current assets**
Stocks
17
Debtors
18
Cash at bank and in hand
**Current liabilities**
Creditors: amounts falling due within one
year
19
**Net current liabilities**
**Total assets less current liabilities**
Creditors: amounts falling due after more
than one year
20
**Net assets excluding pension liability**
Defined benefit pension scheme liability
**Total net assets**|**42,179**
**1,438,399**
**57,289**
**1,537,867**
**(2,428,220)**|**2025**
**£**
**1,896,641**
**1,788,416**
**3,685,057**
_29,573_
_1,355,707_
_260,875_
_1,646,155_
_(1,825,815)_
**(890,353)**
**2,794,704**
**(380,030)**
**2,414,674**
**(600,000)**
**1,814,674**|_2024_
_£_
_1,934,282_
_1,887,697_
_3,821,979_
_(179,660)_
_3,642,319_
_(487,270)_
_3,155,049_
_(600,000)_
_2,555,049_|
|---|---|---|---|
Page 16
**SKILLS AND EDUCATION GROUP REGISTERED NUMBER: 02640936**
## **CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2025**
|**Note**
**Charity funds**
Restricted funds
21
Unrestricted funds
21
**Total funds**|**2025**
**£**
**-**
**1,814,674**
**1,814,674**|_2024_
_£_
_-_
_2,555,049_|
|---|---|---|
||||
|||_2,555,049_|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................
## **J W Kerry**
(Chair of Trustees)
Date: 30 April 2026
The notes on pages 21 to 46 form part of these financial statements.
Page 17
## **SKILLS AND EDUCATION GROUP REGISTERED NUMBER: 02640936**
## **CHARITY BALANCE SHEET AS AT 31 AUGUST 2025**
|**Note**
**Fixed assets**
Intangible assets
14
Tangible assets
15
Investments
16
**Current assets**
Debtors
18
Cash at bank and in hand
**Current liabilities**
Creditors: amounts falling due within one
year
19
**Net current liabilities**
**Total assets less current liabilities**
Creditors: amounts falling due after more
than one year
20
**Net assets excluding pension asset**
**Total net assets**|**817,317**
**55**
**817,372**
**(2,953,811)**|**2025**
**£**
**133,136**
**1,200,803**
**2,000,722**
**3,334,661**
_1,123,310_
_5,459_
_1,128,769_
_(1,911,834)_
**(2,136,439)**
**1,198,222**
**(380,030)**
**818,192**
**818,192**|_2024_
_£_
_139,581_
_1,283,974_
_1,712,936_
_3,136,491_
_(783,065)_
_2,353,426_
_(487,270)_
_1,866,156_
_1,866,156_|
|---|---|---|---|
Page 18
**SKILLS AND EDUCATION GROUP REGISTERED NUMBER: 02640936**
## **CHARITY BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2025**
|**Note**
**Charity funds**
Restricted funds
21
Unrestricted funds
21
**Total funds**|**2025**
**£**
**-**
**818,192**
**818,192**|_2024_
_£_
_-_
_1,866,156_|
|---|---|---|
||||
|||_1,866,156_|
The Charity's net movement in funds for the year was _£_ (1,044,576) _(2024 - £(608,062))_ .
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................
**J W Kerry** (Chair of Trustees)
Date: 30 April 2026
The notes on pages 21 to 46 form part of these financial statements.
Page 19
## **SKILLS AND EDUCATION GROUP**
## **CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2025**
|**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Dividends, interests and rents from investments
Purchase of intangible assets
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
**Net cash used in investing activities**
**Cash flows from financing activities**
**Net cash provided by financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
The notes on pages 21 to 46 form part of these financial statements|**2025**
**£**
**201,839**
**173**
**(395,777)**
**(9,821)**
**-**
**-**
**(405,425)**
**-**
**(203,586)**
**260,875**
**57,289**|_2024_
_£_
_(541,055)_|
|---|---|---|
|||_14,863_
_(733,548)_
_(105,210)_
_383,796_
_(31,849)_
**(471,948)**|
|||**-**|
|||**(1,013,003)**
_1,273,878_
_260,875_|
Page 20
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **1. General information**
The Charity is a company limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. It's aim is the advancement of the education and training of young people and adults. Each of the Trustees is liable to contribute to an amount not exceeding £1 towards the assets of the parent charitable company in the event of liquidation.
The financial statements are prepared in pound sterling which is the functional currency of the entity.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 October 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Skills and Education Group 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.
The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.
The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.
## **2.2 Going concern**
The financial statements have been prepared on a going concern basis. At the year end, the Group reported net current liabilities of £890,353, which necessitated a detailed assessment by the Trustees as to whether the Group and its subsidiary entities can continue to operate for the foreseeable future.
After making appropriate enquiries, the Trustees have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. While the past year has presented significant challenges which did give rise to material uncertainties, the organisation is showing positive signs of recovery. Under new leadership, a number of strategic operational and financial decisions have been taken to course-correct and stabilise the Group's activities. The organisation is well positioned, with sufficient resources and a clear strategic plan, to mitigate and navigate these challenges.
The Trustees have reviewed the Group’s financial position, including the level of funds held, post year-end results, and the projected income and expenditure for a period of at least 12 months from the date of approving these financial statements. Based on these forecasts, which indicate a return to positive EBITDA, the Trustees are confident that the Group remains a going concern.
For this reason, the Trustees continue to adopt the going concern basis in preparing the financial statements.
Page 21
**SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **2. Accounting policies (continued)**
## **2.3 Income**
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
## **2.4 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
## **2.5 Research and development**
Development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on the straight line basis over the anticipated life of the benefits arising from the completed product or project.
Deferred research and development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance of any related research and development is written off to the Consolidated Statement of Financial Activities.
## **2.6 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **2.7 Intangible assets and amortisation**
Intangible assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Page 22
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **2. Accounting policies (continued)**
## **2.7 Intangible assets and amortisation (continued)**
Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.
Amortisation is provided on the following bases:
Development expenditure - % not depreciated Website - 25 % straight line Bespoke software - 20 % straight line Goodwill - 10 % straight line
## **2.8 Tangible fixed assets and depreciation**
Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
- Property 1-15% straight line - Fixtures and fittings 10-25% straight line - Office equipment 20-33% straight line - Computer equipment 20-33% straight line Other fixed assets - 5-10% straight line
## **2.9 Investments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities.
Investments in subsidiaries are valued at cost less provision for impairment.
## **2.10 Stocks**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
Page 23
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **2. Accounting policies (continued)**
## **2.11 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due
## **2.12 Cash at bank and in hand**
Cash at bank and 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.
## **2.13 Liabilities**
Liabilities and provisions are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost.
## **2.14 Financial instruments**
The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **2.15 Pensions**
A charitable company within the group (Skills and Education Group Access) previously contributed to the West Yorkshire Pension Scheme (WYPS), a defined benefit scheme, at rates set by the scheme's actuaries. The charity is no longer an active member of the scheme, and therefore a provision for the orphan exit charge from the pension scheme is recognised in these financial statements.
The charity also contributes to defined contribution schemes for certain employees all of which are separately administered from the charity and the charge recognised in the Statement of Financial Activities.
## **2.16 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.
Investment income, gains and losses are allocated to the appropriate fund.
Page 24
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **3. Critical accounting estimates and areas of judgment**
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
The present value of the WYPS defined liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net costs or income for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of the liability.
## **4. Income from charitable activities**
|Learner recognition
Access to HE
Project, membership and CPD
**Total 2025**
_Total 2024_|**Unrestricted**
**funds**
**2025**
**£**
3,057,134
688,975
127,100
3,873,209
_3,721,001_|**Total**
**funds**
**2025**
**£**
**3,057,134**
**688,975**
**127,100**
**3,873,209**
_3,721,001_|_Total_
_funds_
_2024_
_£_
_2,933,668_
_388,066_
_399,267_|
|---|---|---|---|
||||_3,721,001_|
|||||
Page 25
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **5. Income from other trading activities**
## **Income from non charitable trading activities**
|Income from trading subsidiaries
_Total 2024_|**Unrestricted**
**funds**
**2025**
**£**
2,951,278
_3,162,229_|**Total**
**funds**
**2025**
**£**
**2,951,278**
_3,162,229_|_Total_
_funds_
_2024_
_£_
_3,162,229_|
|---|---|---|---|
|||||
## **6. Investment income**
|Dividends receivable from listed investments
Interest receivable - local cash
Interest receivable - other
**Total 2025**
_Total 2024_|**Unrestricted**
**funds**
**2025**
**£**
-
173
-
173
_14,863_|**Total**
**funds**
**2025**
**£**
**-**
**173**
**-**
**173**
_14,863_|_Total_
_funds_
_2024_
_£_
_9,691_
_2,833_
_2,339_|
|---|---|---|---|
||||_14,863_|
|||||
## **7. Other incoming resources**
|Lettings, admin fees and other income
_Total 2024_|**Unrestricted**
**funds**
**2025**
**£**
44,619
_72,254_|**Total**
**funds**
**2025**
**£**
**44,619**
_72,254_|_Total_
_funds_
_2024_
_£_
_72,254_|
|---|---|---|---|
Page 26
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **8. Expenditure on raising funds**
|Cost of sales - BIIAB
Cost of sales - QLS
Administration expenses - BIIAB
Administration expenses - QLS
Depreciation - BIIAB
Salary recharges - BIIAB
Salary recharges - QLS|**2025**
**£**
**447,066**
**-**
**1,026,246**
**-**
**1,638**
**1,623,868**
**-**
**3,098,818**|_2024_
_£_
_449,732_
_-_
_1,740,207_
_-_
_1,558_
_1,580,610_
_-_|
|---|---|---|
|||_3,772,107_|
## **9. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|Learner recognition
Access to HE
Project, membership and CPD
**Total 2025**
_Total 2024_|**Unrestricted**
**funds**
**2025**
**£**
3,031,814
464,399
1,016,716
4,512,929
_4,951,466_|**Total**
**2025**
**£**
**3,031,814**
**464,399**
**1,016,716**
**4,512,929**
_4,951,466_|_Total_
_2024_
_£_
_3,494,215_
_746,865_
_710,386_
_4,951,466_|
|---|---|---|---|
Page 27
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **10. Analysis of expenditure by activities**
|Learner recognition
Access to HE
Project, membership and CPD
**Total 2025**
_Total 2024_|**Activities**
**undertaken**
**directly**
**2025**
**£**
982,579
158,553
116,325
1,257,457
_1,662,876_|**Support**
**costs**
**2025**
**£**
2,049,235
305,846
900,391
3,255,472
_3,288,590_|**Total**
**funds**
**2025**
**£**
**3,031,814**
**464,399**
**1,016,716**
**4,512,929**
_4,951,466_|_Total_
_funds_
_2024_
_£_
_3,494,215_
_746,865_
_710,386_|
|---|---|---|---|---|
|||||_4,951,466_|
||||||
## **Analysis of direct costs**
|Staff costs
Moderator and examiner costs
Centre costs
CPD and project expenses
Certificates
QAA registration
Foundation activities
**Total 2025**
_Total 2024_|**Learner**
**recognition**
**2025**
**£**
701,642
248,287
11,537
-
21,113
-
-
982,579
_1,125,296_|**Access to HE**
**2025**
**£**
128,502
700
-
-
-
29,351
-
158,553
_280,341_|**Project,**
**membership**
**and CPD**
**2025**
**£**
54,048
-
-
53,277
-
-
9,000
116,325
_257,239_|**Total**
**funds**
**2025**
**£**
**884,192**
**248,987**
**11,537**
**53,277**
**21,113**
**29,351**
**9,000**
**1,257,457**
_1,662,876_|_Total_
_funds_
_2024_
_£_
_889,612_
_351,376_
_25,870_
_162,742_
_85,157_
_37,049_
_111,070_|
|---|---|---|---|---|---|
||||||_1,662,876_|
|||||||
Page 28
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **10. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|Staff costs
Depreciation
Bad debt
Other staff costs
Qualification development
Administration
Communications and marketing
Donations
Premises
ICT costs
Professional fees
Bank charges
Irrecoverable VAT
Governance costs
**Total 2025**
_Total 2024_|**Learner**
**recognition**
**2025**
**£**
990,970
211,946
(15,677)
336,650
159,472
77,353
19,191
38,505
21,137
131,096
45,689
1,862
10,300
4,434
2,049,235
_2,368,919_|**Access to HE**
**2025**
**£**
192,754
52,705
(55,304)
10,928
-
10,533
23,616
-
24,588
41,961
9,680
312
1,997
8,383
305,846
_466,524_|**Project,**
**membership**
**and CPD**
**2025**
**£**
81,074
145,849
2,043
54,980
16,408
1,737
41,583
13,134
14,634
15,243
305,845
13,786
135,693
58,382
900,391
_453,147_|**Total**
**funds**
**2025**
**£**
**1,264,798**
**410,500**
**(68,938)**
**402,558**
**175,880**
**89,623**
**84,390**
**51,639**
**60,359**
**188,300**
**361,214**
**15,960**
**147,990**
**71,199**
**3,255,472**
_3,288,590_|_Total_
_funds_
_2024_
_£_
_1,334,419_
_359,595_
_80,813_
_349,033_
_87,033_
_104,351_
_169,619_
_67,499_
_48,504_
_243,668_
_199,254_
_9,827_
_202,579_
_32,396_|
|---|---|---|---|---|---|
||||||_3,288,590_|
|||||||
## **11. Auditors' remuneration**
||**2025**|_2024_|
|---|---|---|
||**£**|_£_|
|Fees payable to the Charity's auditor for the audit of the Charity's annual|||
|accounts|**35,000**|_29,000_|
Page 29
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **12. Staff costs**
|Wages and salaries costs
Social security costs
Pension costs|**Group - 2025**
**£**
**3,508,809**
**356,960**
**216,171**
**4,081,940**|_Group- 2024_
_£_
_3,160,437_
_322,837_
_243,408_|
|---|---|---|
|||_3,726,682_|
During the year a total of £5,498 (2024: £50,963) was paid in respect of contractual termination and redundancy payments, relating to 1 employee. (2024: 8 employees).
During the year a further £2,506 (2024: £2,506) was paid in respect of contractual termination payments which represent an ongoing annual cost to the parent charitable company in perpetuity until the death of individual's covered within this payment. This arrangement was in place prior to any of the current trustees serving on the board.
The average number of persons employed by the charitable company during the year was as follows:
|Charitable activities
Administration
Management|**Group - 2025** _Group - 2024_
**£**
_£_
**132**
_60_
**-**
_23_
**15**
_13_
**147**
_96_|**Group - 2025** _Group - 2024_
**£**
_£_
**132**
_60_
**-**
_23_
**15**
_13_
**147**
_96_|
|---|---|---|
|||_96_|
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
||**2025**|_2024_|
|---|---|---|
||**£**|_£_|
|In the band £60,001 - £70,000|**2**|_3_|
|In the band £70,001 - £80,000|**-**|_-_|
|In the band £80,001 - £90,000|**1**|_-_|
|In the band £90,001- £100,000|**-**|_1_|
|In the band £150,001 - £160,000|**-**|_1_|
The total remuneration and benefits received by key management personnel was £242,536 (2024: £377,684). The trustees consider the key management personnel to be the Chief Executive Officer and Deputy Chief Executive Officer. The Chief Executive Officer and Deputy Chief Executive Officer left during the year, with an interim Chief Executive Offier appointed.
Page 30
**SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **13. Trustees' remuneration and expenses**
During the year, one or more Trustees has been paid remuneration or has received other benefits from an employment with the Charity for their role as Chief Executive Officer. The value of Trustees' remuneration and other benefits was as follows:
|||**2025**|_2024_|
|---|---|---|---|
|||**£**|_£_|
|P A Eeles|Remuneration|**95,645**|_157,357_|
||Pension contributions paid|**18,352**|_30,391_|
|Y Y Mellor|Remuneration|**57,969**|_-_|
||Pension contributions paid|**8,383**|_-_|
P A Eeles resigned as Chief Executive Officer and Trustee at 08 April 2025.
During the year, retirement benefits were accruing to 1 Trustees _(2024 - 1)_ in respect of defined benefit pension schemes.
During the year ended 31 August 2025, travel and accomodation expenses totalling _£_ 3,288 were reimbursed or paid directly to 6 Trustees of the charitable group _(2024 - £1,657 to 2 Trustees)_ .
Included in the above were travel, accomodation and subsistence expenses reimbursed to 6 trustees of the parent charitable company totalling £3,288 (2024: £1,657 to 2 Trustees).
Page 31
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **14. Intangible assets**
## **Group**
|**Cost**
At 1 September 2024
Additions
Disposals
At 31 August 2025
**Amortisation**
At 1 September 2024
Charge for the year
On disposals
At 31 August 2025
**Net book value**
At 31 August 2025
_At 31 August 2024_|**Developm't**
**£**
**417,244**
**(1,668)**
**(103,334)**
**312,242**
**69,557**
**89,877**
**(34,411)**
**125,023**
**187,219**
_347,687_|**Bespoke**
**software**
**£**
**117,776**
**-**
**-**
**117,776**
**35,771**
**33,410**
**-**
**69,181**
**48,595**
_82,005_|**Website**
**£**
**530,472**
**109,659**
**-**
**640,131**
**306,429**
**80,288**
**-**
**386,717**
**253,414**
_224,043_|**Goodwill**
**£**
**1,609,202**
**287,786**
**-**
**1,896,988**
**328,655**
**160,920**
**-**
**489,575**
**1,407,413**
_1,280,547_|**Total**
**£**
**2,674,694**
**395,777**
**(103,334)**|
|---|---|---|---|---|---|
||||||**2,967,137**|
||||||**740,412**
**364,495**
**(34,411)**|
||||||**1,070,496**|
||||||**1,896,641**
_1,934,282_|
Goodwill relates to the purchase of BIIAB Qualifications Limited, a wholly owned subsidiary company.
Page 32
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **14. Intangible assets (continued)**
## **Charity**
|**Cost**
At 1 September 2024
Additions
At 31 August 2025
**Amortisation**
At 1 September 2024
Charge for the year
At 31 August 2025
**Net book value**
At 31 August 2025
_At 31 August 2024_|**Bespoke**
**software**
**£**
**18,367**
**-**
**18,367**
**4,839**
**13,528**
**18,367**
**-**
_13,528_|**Website**
**£**
**272,462**
**52,391**
**324,853**
**146,409**
**45,308**
**191,717**
**133,136**
_126,053_|**Total**
**£**
**290,829**
**52,391**|
|---|---|---|---|
||||**343,220**|
||||**151,248**
**58,836**|
||||**210,084**|
||||**133,136**
_139,581_|
Page 33
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **15. Tangible fixed assets**
## **Group**
|**Cost or valuation**
At 1 September 2024
Additions
At 31 August 2025
**Depreciation**
At 1 September 2024
Charge for the year
At 31 August 2025
**Net book value**
At 31 August 2025
_At 31 August 2024_|**Property**
**£**
**2,596,200**
**5,983**
**2,602,183**
**1,087,863**
**38,514**
**1,126,377**
**1,475,806**
_1,508,337_|**Fixtures and**
**fittings**
**£**
**536,987**
**-**
**536,987**
**266,336**
**33,552**
**299,888**
**237,099**
_270,651_|**Office**
**equipment**
**£**
**12,829**
**-**
**12,829**
**8,085**
**1,637**
**9,722**
**3,107**
_4,744_|**Computer**
**equipment**
**£**
**358,638**
**3,838**
**362,476**
**254,673**
**35,399**
**290,072**
**72,404**
_103,965_|**Prefab'd**
**building**
**£**
**15,842**
**-**
**15,842**
**15,842**
**-**
**15,842**
**-**
_-_|**Total**
**£**
**3,520,496**
**9,821**|
|---|---|---|---|---|---|---|
|||||||**3,530,317**|
|||||||**1,632,799**
**109,102**|
|||||||**1,741,901**|
|||||||**1,788,416**
_1,887,697_|
Page 34
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **15. Tangible fixed assets (continued)**
## **Charity**
|**Cost or valuation**
At 1 September 2024
Additions
At 31 August 2025
**Depreciation**
At 1 September 2024
Charge for the year
At 31 August 2025
**Net book value**
At 31 August 2025
_At 31 August 2024_
**Group**|**Freehold**
**property**
**£**
**1,270,284**
**-**
**1,270,284**
**352,827**
**22,014**
**374,841**
**895,443**
_917,457_|**Fixtures and**
**fittings**
**£**
**511,255**
**-**
**511,255**
**240,861**
**33,496**
**274,357**
**236,898**
_270,394_|**Computer**
**equipment**
**£**
**283,905**
**3,838**
**287,743**
**187,782**
**31,499**
**219,281**
**68,462**
_96,123_|**Prefab'd**
**building**
**£**
**15,842**
**-**
**15,842**
**15,842**
**-**
**15,842**
**-**
_-_|**Total**
**£**
**2,081,286**
**3,838**|
|---|---|---|---|---|---|
||||||**2,085,124**|
||||||**797,312**
**87,009**|
||||||**884,321**|
||||||**1,200,803**
_1,283,974_|
Property fixed assets consist of freehold property with a net book value of £895,443 (2024: £917,457) and long-term leasehold property with a net book value of £580,363 (2024: £590,880).
Page 35
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **16. Fixed asset investments**
|**Charity**
**Cost or valuation**
At 1 September 2024
Additions
At 31 August 2025
**Net book value**
At 31 August 2025
_At 31 August 2024_|**Investments**
**in subsidiary**
**companies**
**£**
**1,712,936**
**287,786**|
|---|---|
||**2,000,722**
**2,000,722**|
||_1,712,936_|
Fixed asset investment additions relate to additional costs arising from the acquisition of BIIAB Qualifications Limited.
Page 36
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **16. Fixed asset investments (continued)**
## **Principal subsidiaries**
The following were subsidiary undertakings of the Charity:
|**Names**|**Company**|**Charity**|**Registered office or principal**|**Principal activity**|**Holding**|
|---|---|---|---|---|---|
||**number**|**registration**|**place of business**|||
|||**number**||||
|Skills and Education Group Awards|04117784|1086947|Robins Wood House, Robins|Advancement of skills|100%|
||||Wood Road, Aspley, Nottingham,|and education||
||||NG8 3NH|||
|Skills and Education Access|03773914|1088839|Robins Wood House, Robins|Advancement of|100%|
||||Wood Road, Aspley, Nottingham,|education learning||
||||NG8 3NH|and training||
|BIIAB Qualifications Limited|10054831|N/A|Robins Wood House, Robins|Advancement of|100%|
||||Wood Road, Aspley, Nottingham,|education learning||
||||NG8 3NH|and training in the||
|||||hospitality sector||
|Quality Licence Scheme Limited|10051052|N/A|Robins Wood House, Robins|Dormant company|100%|
||||Wood Road, Aspley, Nottingham,|||
||||NG8 3NH|||
Page 37
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **16. Fixed asset investments (continued)**
The financial results of the subsidiaries for the year were:
|**Names**|**Income**|**Expenditure**|**Profit/(Loss)/**|**Net assets**|
|---|---|---|---|---|
||**£**|**£**|**Surplus/**|**£**|
||||**(Deficit) for**||
||||**the year**||
||||**£**||
|Skills and Education Group Awards|**3,038,574**|**2,589,825**|**448,749**|**2,134,217**|
|Skills and Education Access|**748,663**|**583,573**|**165,090**|**(74,521)**|
|BIIAB Qualifications Limited|**2,951,278**|**3,098,818**|**(147,540)**|**(469,905)**|
Page 38
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **17. Stocks**
||**Group**|_Group_|
|---|---|---|
||**2025**|_2024_|
||**£**|_£_|
|Finished goods and goods for resale|**42,179**|_29,573_|
## **18. Debtors**
|**Due within one year**
Trade debtors
Amounts owed by group undertakings
Other debtors
Called up share capital not paid
Prepayments and accrued income|**Group**
**2025**
**£**
**949,340**
**-**
**-**
**2**
**489,057**
**1,438,399**|_Group_
_2024_
_£_
_1,034,990_
_-_
_614_
_2_
_320,101_
_1,355,707_|**Charity**
**2025**
**£**
**10,708**
**748,534**
**-**
**-**
**58,075**
**817,317**|_Charity_
_2024_
_£_
_29,610_
_938,564_
_614_
_-_
_154,522_|
|---|---|---|---|---|
|||||_1,123,310_|
Page 39
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **19. Creditors: Amounts falling due within one year**
|Bank overdrafts
Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 September 2024
Resources deferred during the year
Amounts released from previous periods|**Group**
**2025**
**£**
**163,842**
**845,143**
**-**
**532,620**
**406,100**
**480,515**
**2,428,220**
**Group**
**2025**
**£**
**464,032**
**394,800**
**(464,032)**
**394,800**|_Group_
_2024_
_£_
_-_
_605,581_
_-_
_540,109_
_135,685_
_544,440_
_1,825,815_
_Group_
_2024_
_£_
_30,500_
_464,032_
_(30,500)_
_464,032_|**Charity**
**2025**
**£**
**163,842**
**390,372**
**1,818,906**
**146,835**
**406,100**
**27,756**|_Charity_
_2024_
_£_
_-_
_158,992_
_1,432,955_
_134,349_
_124,355_
_61,183_
_1,911,834_
_Charity_
_2024_
_£_
_3,215_
_38,957_
_(3,215)_
_38,957_|
|---|---|---|---|---|
||||**2,953,811**
**Charity**
**2025**
**£**
**38,957**
**14,155**
**(38,957)**||
||||**14,155**||
Deferred income represents monies received in advance for learner registrations, memberships, annual centre fees, services and projects.
## **20. Creditors: Amounts falling due after more than one year**
||**Group**|_Group_|**Charity**|_Charity_|
|---|---|---|---|---|
||**2025**|_2024_|**2025**|_2024_|
||**£**|_£_|**£**|_£_|
|Other creditors|**380,030**|_487,270_|**380,030**|_487,270_|
Page 40
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **21. Statement of funds**
## **Statement of funds - current year**
|**Unrestricted funds**
General funds - charitable
company
Skills and Education Group
Awards - post acquisition
reserves
Skills and Education Group
Access
BIIAB Qualifications Limited -
post aqcuisition reserves
Skills and Education Group
Access - designated pension
reserve|**Balance at 1**
**September**
**2024**
**£**
**1,456,394**
**1,649,807**
**360,389**
**(311,541)**
**(600,000)**
**2,555,049**|**Income**
**£**
**130,764**
**3,038,574**
**748,663**
**2,951,278**
**-**
**6,869,279**|**Expenditure**
**£**
**(1,342,919)**
**(2,589,825)**
**(583,573)**
**(3,098,818)**
**-**
**(7,615,135)**|**Gains/**
**(Losses)**
**£**
**5,481**
**-**
**-**
**-**
**-**
**5,481**|**Balance at 31**
**August 2025**
**£**
**249,720**
**2,098,556**
**525,479**
**(459,081)**
**(600,000)**
**1,814,674**|
|---|---|---|---|---|---|
Page 41
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **21. Statement of funds (continued)**
## **Statement of funds - prior year**
|**Unrestricted funds**
General funds - charitable
company
Skills and Education Group
Awards - post acquisition
reserves
Skills and Education Group
Access
BIIAB Qualifications Limited -
post aqcuisition reserves
Skills and Education Group
Access - designated pension
reserve
Quality Licence Scheme
Limited|_Balance at_
_1 September_
_2023_
_£_
_2,268,861_
_1,511,250_
_766,601_
_293,788_
_(97,000)_
_51,352_
_4,794,852_|_Income_
_£_
_445,569_
_2,903,268_
_454,732_
_3,166,778_
_-_
_-_
_6,970,347_|_Expenditure_
_£_
_(1,274,459)_
_(2,764,711)_
_(860,944)_
_(3,772,107)_
_-_
_(51,352)_
_(8,723,573)_|_Gains/_
_(Losses)_
_£_
_16,423_
_-_
_-_
_-_
_(503,000)_
_-_
_(486,577)_|_Balance at_
_31 August_
_2024_
_£_
_1,456,394_
_1,649,807_
_360,389_
_(311,541)_
_(600,000)_
_-_
_2,555,049_|
|---|---|---|---|---|---|
Page 42
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **22. Summary of funds**
## **Summary of funds - current year**
||**Balance at 1**|||||
|---|---|---|---|---|---|
||**September**|||**Gains/**|**Balance at 31**|
||**2024**|**Income**|**Expenditure**|**(Losses)**|**August 2025**|
||**£**|**£**|**£**|**£**|**£**|
|General funds|**2,555,049**|**6,869,279**|**(7,615,135)**|**5,481**|**1,814,674**|
|**Summary of funds - prior year**||||||
||_Balance at_||||_Balance at_|
||_1 September_|||_Gains/_|_31 August_|
||_2023_|_Income_|_Expenditure_|_(Losses)_|_2024_|
||_£_|_£_|_£_|_£_|_£_|
|General funds|_4,794,852_|_6,970,347_|_(8,723,573)_|_(486,577)_|_2,555,049_|
## **23. Analysis of net assets between funds**
**Analysis of net assets between funds - current year**
|Tangible fixed assets
Intangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Provisions for liabilities and charges
**Total**|**Unrestricted**
**funds**
**2025**
**£**
1,788,416
1,896,641
1,537,867
(2,428,220)
(380,030)
(600,000)
1,814,674|**Total**
**funds**
**2025**
**£**
**1,788,416**
**1,896,641**
**1,537,867**
**(2,428,220)**
**(380,030)**
**(600,000)**|
|---|---|---|
|||**1,814,674**|
Page 43
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **23. Analysis of net assets between funds (continued)**
## **Analysis of net assets between funds - prior year**
|Tangible fixed assets
Intangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Provisions for liabilities and charges
**Total**|_Unrestricted_
_funds_
_2024_
_£_
_1,887,697_
_1,934,282_
_1,646,155_
_(1,825,815)_
_(487,270)_
_(600,000)_
_2,555,049_|_Restricted_
_funds_
_2024_
_£_
_-_
_-_
_-_
_-_
_-_
_-_
_-_|_Total_
_funds_
_2024_
_£_
_1,887,697_
_1,934,282_
_1,646,155_
_(1,825,815)_
_(487,270)_
_(600,000)_|
|---|---|---|---|
||||_2,555,049_|
## **24. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net expenditure for the year (as per Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
Amortisation charges
Gains/(losses) on investments
Dividends, interests and rents from investments
Loss on the disposal of fixed assets
Decrease/(increase) in stocks
Increase in debtors
Increase in creditors
**Net cash provided by/(used in) operating activities**|**Group**
**2025**
**£**
**(740,375)**
**109,102**
**364,495**
**-**
**(173)**
**68,923**
**(12,606)**
**(82,692)**
**495,165**
**201,839**|_Group_
_2024_
_£_
_(1,736,803)_
_106,793_
_280,572_
_(16,423)_
_(14,863)_
_112,699_
_84,327_
_(133,578)_
_776,221_|
|---|---|---|
|||_(541,055)_|
Page 44
## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **25. Analysis of cash and cash equivalents**
|Cash in hand
**Total cash and cash equivalents**|**Group**
**2025**
**£**
**57,289**
**57,289**|_Group_
_2024_
_£_
_260,875_|
|---|---|---|
||||
|||_260,875_|
## **26. Analysis of changes in net debt**
|Cash at bank and in hand
Bank overdrafts repayable on demand|**At 1**
**September**
**2024**
**£**
**260,875**
**-**
**260,875**|**Cash flows**
**£**
**(203,586)**
**(163,842)**
**(367,428)**|**At 31 August**
**2025**
**£**
**57,289**
**(163,842)**|
|---|---|---|---|
||||**(106,553)**|
## **27. Pension commitments**
|Pension buyout liability|**2025**
_2024_
**£**
_£_
**600,000**
_600,000_
**600,000**
_600,000_|
|---|---|
## **West Yorkshire Pension Fund**
The charity, Skills and Education Group Access, participated in the West Yorkshire Fund (WYPF), a multi-employer defined benefit scheme, until the final member of the scheme ceased in the period to 31 August 2023.
Discussions with West Yorkshire Pension Fund with regards to the potential buyout value are ongoing, with the most recent available valuation of the buyout value provided by WYPF being £600,000 for an orphan exit. This valuation is dated 31 March 2024, and is at present the most reliable valuation available to Trustees for the potential buyout liability.
In addition to negotiations with WYPF, the Trustees are in discussion the pension scheme guarantors, to determine whether some or all of the liability could be subsumed by the remaining 4 guarantors who are actively participating in this process.
The buyout value is the most reliable estimate of the liability to the charity at the time of signing off the accounts. It is possible that the liability will be much lower than £600,000, or no liability at all if this were to be subsumed by the guarantors.
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## **SKILLS AND EDUCATION GROUP**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025**
## **28. Operating lease commitments**
The Group and the Charity had no commitments under non-cancellable operating leases at 31 August 2025.
## **29. Related party transactions**
## **Skills and Education Group Awards**
During the year the charity recharged wages and other costs to its subsidiary, totalling £1,440,699 (2024: £1,275,485). At the year end an amount of £1,818,906 (2024: £1,432,955) was owed by Skills and Education Group to Skills and Education Group Awards, as a result of cash advances net of the recharged costs.
## **Skills and Education Group Access**
During the year the charity recharged wages and other costs to its subsidiary, totalling £232,958 (2024: £414,970). At the year end an amount of £166,502 was owed by Skills and Education Group Access to Skills and Education Group (2024: £314,706).
## **BIIAB Qualifications Limited**
During the year the charity recharged wages and other costs to its subsidiary, totalling £1,623,868 (2024: £1,580,610). At the year end an amount of £582,032 (2024: £623,858) was owed by BIIAB Qualifications Limited to Skills and Education Group.
## **Yultan Y Mellor**
Y Y Mellor, a trustee and then interim chief executive during the year, provided additional consultancy services to the Skills and Education Group prior to thier appointment as interim chief executive. Payments of £43,240 (2024: £23,798) were made during the year in relation to these services, with no amounts outstanding at the year end (2024: £Nil).
## **Peridot Partners Limited**
Y Y Mellor, a trustee and then interim chief executive during the year, is also a principal consultant at Peridot Partners. During the year payments of £18,750 (2024: £Nil) were made in relation to recruitment services, with £10,800 oustanding at the year-end (2024: £Nil).
## **Bedford College**
Y Koursis, a trustee, is also a director of Bedford College. During the year income of £Nil (2024: £960) was received for the provision of charitable services, and expenditure of £3,000 (2024: £4,000) incurred for the same purpose. There are amounts outstanding at the year end of £Nil (2024: £Nil).
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