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2023-07-31-accounts

Charity Number: 1061605 Company Number: 03163754

Training and Development Resource Ltd (a company limited by guarantee)

Report of the Trustees and Financial Statements

For the year ended 31 July 2023

Training and Development Resource Limited

Contents

Contents
eee
Page
Board ofTrustees Report 1-10
Independent Auditors Report to the Members and Trustees
ofthe Charitable Company 11-13
Consolidated Statement of Financial Activities 14
Consolidated Balance Sheet 15
Charity Balance Sheet 16
Cash FlowStatement 17
NotestotheConsolidatedFinancialStatements 18-34

Training and Development Resource Limited

Board of Trustees Reporting For the year ended 31 July 2023

Company Registration Number: 03163754
Registered in England and Wales
Charity Registration Number: 1061605
Registered Office: Q1 Quorum Business Park
Benton Lane
Newcastle upon Tyne
NE12 8EX
Board of Trustees: O Grant OBE DL Chair
R Dodd MBE
Young
D Kilkenny Resigned 19 December 2023
J Smith
M Collins
K O'Brien
D Heaney
Company secretary: Li Xue
Bankers: Lloyds Bank Ple
102 Grey Street
Newcastle upon Tyne
NE99 1SL
Auditors: HainesWatts North EastAuditLLP
17 Queens Lane
Newcastle upon Tyne
NE11RN

1

Board of Trustees Report (Continued) For the year ended 31 July 2023

Training and Development Resource Limited

eee

The trustees are pleased to present their annual report together with the consolidated financial statements of the charitable company for the year ended 31 July 2023.

The financial statements comply with the Memorandum and Articles of Association and the requirements of the Charities Act 2011, the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS102) (effective 1 January 2015).

PUBLIC BENEFIT STATEMENT

The Trustees have referred to the guidelines contained in the Charity Commission's general guidance on public benefit when reviewing the year’s aims and objectives and in planning future activities. The charity's aims and objectives above are reported clearly below to provide clear and demonstrable public benefit.

GOVERNING DOCUMENT

Training and Development Resource Limited is a registered charity (No. 1061605). It is governed by Articles of Association that were last revised on 21 February 2018.

TRUSTEE INDUCTION AND TRAINING

On appointment, each Trustee receives a full briefing and induction on the extensive activities of the Charity and subsidiary. This includes strategy, finance, organisation and systems. In addition, meetings are arranged with all key staff executing the day-to-day activities of Training and Development Resource Limited and its subsidiary company TDR Training Ltd. There is a particular focus on:

e Obligations of Trustees, e The governing documents, e The operational framework, e Reserves and current financial position, Future plans and objectives.

ACHIEVEMENTS & PERFORMANCE

In 2022/23 TDR's training intake exceeded the financial budget. In order to help support the future growth plans by maximising operational efficiencies, further developing training facilities in its head quarter on Quorum Business Park.

TDR delivered the first year of its Higher National Certificate (HNC) in September 2022. This is a huge growth area, as we currently outsource this provision to a local college. Many of our stakeholders are keen for TDR to start this delivery. TDR has become the only independent training organisation in the region to deliver all aspects of engineering apprenticeship from Levels 2 — 4. This is a huge selling point for the business.

As part of the consortium with the North East Workforce Skills group, TDR successfully delivered skills development courses to over 1,200 participants in the North East.

2

Training and Development Resource Limited

Board of Trustees Report (Continued) For the year ended 31 July 2023

AIMS AND OBJECTIVES

TDR was originally set up by the business sector in the North East of England and was incorporated in 1998. The initial imperative was to resolve a major shortfall in young people considering a career as an apprentice in the regional engineering sector. TDR has evolved progressively into an independent, regional, not-for-profit charity that connects learners, their parents and education staff with the business marketplace. TDR Training Limited, the subsidiary company, provides high quality apprenticeships while promoting science and engineering technology as potential career options for young people.

TDR continuously strives for excellence and to act in the best interests of learners by providing opportunity for all to learn new skills and to develop marketable expertise. TDR recognises, promotes and benefits from inclusion and seeks to expand the skills development and progression of individuals to ensure sufficient resource of operators, technicians, engineers and scientists who are adequately equipped to keep pace with the latest technologies and standards. In parallel with this approach, TDR is totally committed to safeguarding its clients. Its procedures and outcomes are formally reviewed and updated at Trustee meetings, where directors are fully briefed and involved with the policy development and execution of this important issue.

TDR is committed to increasing its impact, influence and public benefit along with its scope and scale. The services provided by TDR are underpinned by core values that mandate professionalism, continuous improvement, a focus on excellence and progression. TDR aim to provide employers with imaginative, enthusiastic, ambitious, able and employable people who are ready to enter the technology-sector workforce and add value to their employers.

TDR’s “Objects” as set out in the Articles of Association are to:-

ENSURING TDR DELIVERS THE OBJECTIVES

The Trustees meet quarterly as a Board and review outcomes, strategy and plans. The review looks at what was achieved along with outcomes compared to the plan. The overall strategic direction is therefore considered and amended in the light of current and expected circumstances. TDR have referred to the suggestions contained in the Charities Commission guidance on Public Benefit when reviewing the aims and objectives.

3

Training and Development Resource Limited

Board of Trustees Report (Continued)

For the year ended 34 July 2023 eee

FINANCIAL REVIEW

The financial position for the year shows a group surplus of £203,590 (2022 — £343,716). The outturn was largely as a result of increased apprenticeship and training revenue.

At the year end the overall fund balance of the group stood at £1 ,887,993 (2022 - £1,684,404) represented in a large part by fixed assets, with net current assets of £87,797 (2021 net current liabilities - £4 14,600). The trustees have prepared income and expenditure, balance sheet and cash flow forecasts and have a reasonable expectation that the company has sufficient resources to continue in operational existence for a period of at least 12 months from the date of approving these financial statements. Further detail is given in the going concern accounting policy on page 18.

The charity does not actively fundraise and does not work with any third party fundraisers. TDR complies with relevant fundraising standards and there have been no fundraising complaints in the year.

The financial statements, which have been prepared in accordance with the Charity SORP (FRS102) 2019, conform to current statutory requirements and comply with the Charity’s governing documents.

RESERVES POLICY

The Trustees have reviewed the reserves of the Group. This review encompassed the nature of the income and expenditure streams, the needs to match variable income and fixed commitments and the nature of the reserves to enable the Group to effectively deliver its two key objectives.

The Trustees have concluded that the Group requires a general reserve fund equating to approximately three months of unrestricted fund expenditure which equates to approx. £600k.

Unrestricted funds amounts to £1,770,374 (2022 - £4 ,966, 784) for the group at the end of the year. Restricted funds totalled £117,619 (2022 - £117,619). Of the unrestricted reserves £2,394,695 is represented by fixed assets and £644,388 is an associated secured bank loan. The free reserves are in a deficit of £29,822 (2022 - £232,218). Forecasts show surpluses for the coming period for the group and the board intend to retain these to strengthen the balance sheet and to increase the working capital, building the reserves up to the desired level.

INVESTMENTS POWERS AND RESTRICTIONS

The Trustees can invest any sums or investments received by them in investments in which they are by law authorised to invest money, with power from time to time to change to others of a like nature.

4

Board of Trustees Report (Continued) For the year ended 31 July 2023

Training and Development Resource Limited

PLANS FOR THE FUTURE

TDR’s future plans are to continue to make a difference by creating a world-class skills pool to sustain the people's needs of the Science, Technology, Engineering and Manufacturing (STEM) industries, whilst strategically enhancing the engagement with local schools and authorities and offering advice and guidance on STEM activities.

TDR Training has continued to improve its performance since the Covid Pandemic influenced apprenticeship recruitment and training course numbers. An increased focus on raising the company's profile utilising social media, attending networking events and engaging with organisations such as North East Local Enterprise, North East Ambition and The North East of England Chamber of Commerce, North East Workforce Skills Partner Group, all with the vision of engaging with new stakeholders in the region.

TDR continue to engage with new and existing organisations, with negotiations ongoing with significant North East employers to set up training partnerships which will secure TDR’s position as the leading Independent Training Organisation in the region.

The Trustees will continue to work on achieving its main objectives to:

5

Training and Development Resource Limited

Board of Trustees Report (Continued) For the year ended 31 July 2023 eee

The Trustees will continue to work on achieving its main objectives to:

6

Training and Development Resource Limited

Board of Trustees Report (Continued) For the year ended 31 July 2023

REFERENCE AND ADMINISTRATION DETAILS

Registered Charity Number 1061605 Company Number 03163754 Registered Office Q1 Quorum Business Park, Benton Lane, Newcastle upon Tyne, NE12 8EX

Trustees

The trustees who served the charity during the period and up to the date of signing this report were as follows;

O Grant OBE DL

T Bowman D Trotter R Dodd MBE | Young D Kilkenny Resigned 19 December 2023 J Smith M Collins D Heaney

Key Management Personne! L Xue Chief Executive Officer S Atkinson Business Development Director .

Auditors

In accordance with the company's Articles, a resolution proposing that Haines Watts North East Audit LLP be reappointed as auditor of the company will be put at a General Meeting.

7

Board of Trustees Report (Continuea) For the year ended 31 July 2023

Training and Development Resource Limited

STRUCTURE, GOVERNANCE & MANAGEMENT

Training and Development Resource Limited (TDR) is governed by a Board of up to eight Trustees. There are specific selection criteria laid down regarding the qualities required for a person to be considered suitable. The nomination and selection process involves all Trustees and is democratic and transparent. Appointments are made at the quarterly meetings of the Board.

TDR Training Limited is the wholly owned subsidiary Company of TDR, The TDR Training executive team is led by a Chief Executive Officer, along with a senior management team, which has delegated operational responsibility. TDR Training Ltd employees participate in an annual Performance Management process to reinforce Company ethos and culture and set objectives and targets for the coming year. Detailed operational budgets are established, monitored and formally reviewed by the Trustees and Chief Executive Officer supported by the Senior Management Team. During the year the Chief Executive Officer and senior management team relocated the Training and Development Centre to the Head Quarter Q1 on Quorum Business Park. Training Board meetings were organised 6 times per year.

RECRUITMENT AND APPOINTMENT OF TRUSTEES

Nominated Trustees are appointed at a Trustees meeting. Election is by majority vote, including any proxy votes tendered. Trustees are appointed for a three-year term. Prior to inviting nominees, the Chair review the experience base of the existing Trustees in order to then attract members with relevant and complementary skills, along with sector knowledge, to the Board.

8

Board of Trustees Report (Continued) For the year ended 31 July 2023

Training and Development Resource Limited

PAY AND REMUNERATION OF KEY MANAGEMENT PERSONNEL

The Trustees consider that key management comprise the charity's Trustees and the senior management team who are in charge of directing and controlling, running and operating the charity on a day to day basis. All Trustees give their time freely and no Trustee received remuneration in the year in their role as Trustee. Details of Trustees’ expenses and related party transactions are disclosed in note 12 to the accounts. Salary levels of the senior management team are reviewed annually by the Trustees based on sector benchmarking,

RISK MANAGEMENT

As part of the business planning process the Trustees consider risk at all quarterly meetings. As a result there is a continued focus on highlighting any evolving risk, clarifying the key elements to mitigate and then taking the necessary steps to maximise the impact of the actions agreed.

Maintaining a strong financial base is a key ongoing factor in minimising risk. The Trustees have assessed the major risks to which the Charity is exposed, in particular those relating to the operations and finances of the Charity and are satisfied that systems are in place to mitigate exposure to major risks.

The challenges facing TDR are:

Trustees are confident from regular review that these risks are managed effectively.

9 |

i

Training and Development Resource Limited

Board of Trustees Report (Continued) For the year ended 31 July 2023 eee

TRUSTEES’ RESPONSIBILITIES STATEMENT

The trustees are responsible for preparing the Trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales 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 charity and of the incoming resources and application of resources, including the income and expenditure of the charity. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each of the trustees is aware at the time the report is approved:

;

This report was approved by the trustees on BIR) 24 ang signed on its behalf, by:

es AB GATS

O Grant OBE DL Chair

10

Training and Development Resource Limited {A company limited by guarantee)

Independent Auditors’ Report to the members of Training and Development Resource Limited For the year ended 31 July 2023

Opinion

We have audited the financial statements of Training and Development Resource Limited (the ‘charitable company’) and its subsidiary (the ‘group’) for the year ended 31 July 2023 which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Charity Balance Sheet, the Consolidated Cash Flow Statement 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of freland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor's report thereon. 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.

11

Training and Development Resource Limited

(A company limited by guarantee)

Independent Auditors’ Report to the members of Training and Development Resource Limited (Continued) For the year ended 31 July 2023

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

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:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement set out on page 10, 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

12

Training and Development Resource Limited (A company limited by guarantee)

Independent Auditors’ Report to the members of Training and Development Resource Limited (Continued) For the year ended 31 July 2023

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.

We obtained an understanding of the legal and regulatory framework applicable to both the company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Companies Act 2006, UK GAAP (FRS102) and relevant tax legislation. We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included:

Our audit did not identify any key audit matters relating to the detection of irregularities including fraud. However, despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional 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 this 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 ta state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

‘’) 1 f

Craig Henderson (Senior Statutory Auditor) For and on behalf of Haines Watts North East Audit LLP

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Statutory Auditors & Chartered Accountants

17 Queens Lane Newcastle upon Tyne NE1 1RN

13

Training and Development Resource Limited (A company limited by guarantee)

Consolidated Statement of Financial Activities

For the year ended 31 July 2023

eS

Unrestricted
General Restricted Total Total
Fund Funds 2023 2022
Notes
Income from:
Donationsand legacies
Charitable activities		 4
5		 -
2,268,608		 -
-		 -
2,268,608		 211,344
1,866,845
Otherincome
Investment income		 6
7		 2,658
661		 -
-		 2,658
661		 13,556
-
Total income 2,271,927 - 2,271,927 2,091,745
Expenditure on:
Charitable activities 9 2,068,337 - 2,068,337 1,748,029
Total expenditure 2,068,337 - 2,068,337 1,748,029
Netmovement infunds before transfers 203,590 - 203,590 343,716
Transfers - - - -
Netmovement infunds 203,590 - 203,590 343,716
Reconciliation offunds:
Totalfunds broughtforward 1,566,784 117,619 1,684,403 1,340,687
Totalfundscarriedforward 1,770,374 117,619 1,887,993 1,684,403

There were no unrecognised gains or losses other than the surplus for the year.

14

Training and Development Resource Limited

Consolidated Balance Sheet As at 31 July 2023

Notes 2023 2022
Fixed assets
Tangible assets 14 2,394,695 2,421,184
2,394,695 2,421,184
Current assets
Debtors 16 227,799 276,560
Cash at bank and in hand 378,948 897
606,747 277,457
Creditors: amounts falling
due within one year 17 ( 518,950 ) ( 392,057)
Net current assets/(liabilities) 87,797 ( 114,600)
Total assets less current liabilities 2,482,492 2,306,584
Creditors: amounts falling due after
more than one year 18 ( 574,499 ) (622,181)
Provisionsforliabilities 19 ( 20,000 ) -
Net assets 1,887,993 1,684,403
Charity Funds
Restricted funds 21 117,619 117,619
Unrestricted funds 21 1,770,374 1,566,784
Totalfunds 1,887,993 1,684,403

The financial statements were approved and authorised for issue by the Trustees on ........ and signed on their behalf by:

O Grant OBE DL Chair

The notes on pages 18 to 34 form part of these financial statements.

15

Training and Development Resource Limited

Charity Balance Sheet As at 31 July 2023

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Notes 2023 2022
£ £ £ £
Fixed assets
Tangible assets
Investments		 14
15		 2,363,532
1		 2,397,008
1
Current assets 2,363,533 2,397,009
Debtors
Cash at bank and in hand		 16 20,252
9,355		 21,267
762
Creditors: amounts falling due 29,607 22,029
within oneyear 17 ( 226,102 ) ( 318,492)
Netcurrent liabilities ( 196,495 ) (296,463 )
Total assets less current liabilities 2,167,038 2,100,546
Creditors: amounts falling due
in more than oneyear 18 ( 574,499 ) (622,181 )
Net assets 1,592,539 1,478,365
The funds ofthe charity:
Restricted funds
Unrestricted funds		 21
21		 117,619
1,474,920		 117,619
1,360,746
Totalcharityfunds 1,592,539 1,478,365

These financial statements were approved by the Board of Trustees 2 fQ)nLa and are signed on their behalf by:

PE iS g 9 So yee f AKAAG ThA” O Grant OBE DL Chair

The notes on pages 18 to 34 form part of these financial statements.

16

Training and Development Resource Limited

Consolidated Cash flow statement For the year ended 31 July 2023

.

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||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |Notes|2023|2022| |£|£| |Cash|flows|from|operating|activities| |Net|cash|provided by operating|activities|27|527,612|348,893| |Cash|flows|from|investing|activities| |Purchase|of tangible fixed|assets|(|22,370|)|(217,931|)| |Interest|receivable|661|-| |Net cash provided by investing|activities|(21,709|)(|217,931|)| |Cash|flows|from|financing|activities| |Interest|paid|(33,609)|(9,092)| |Repayment|of|borrowings|(|47,682|)|(72,403|)| |Net cash|used|in|financing|activities|(81,291|)|(81,495|)| |Change|in|cash|and|cash|equivalents|424,612|49|467| |Cash|and cash|equivalents|at|the|beginning|of|the|year|(45,664|)|(95,131)| |Cash|and|cash|equivalents|at the|end|of the|year|378,948|(45,664)| |Breakdown|of cash|and|cash|equivalents| |Cash|at|bank|and|in|hand|378,948|897| |Bank overdrafts|-|(46,561|)|

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17

Training and Development Resource Limited

Notes to the financial statements

for the year ended 31 July 2023

eee

  1. Accounting policies

1.1. Basis of preparation of financial statements The financial statements have been prepared in accordance with 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) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice. Training and Development Resource Limited meets the definition of a public benefit under FRS 102. The financial statements are prepared under the historical cost convention or transaction value unless otherwise stated in the relevant accounting policy note(s). The financial statements are prepared in Sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

1.2. Going concern In the year ending 31 July 2023, a group surplus of £203,590 was achieved. The group has a net asset position of £1,887,993 (2022 - £1,684,403). This includes net current assets of £87,797 (2022 — net current liabilities £114,599). The financial statements have been prepared on a going concern basis, which means that the group and entity is able to operate for the foreseeable future on the basis of known and projected resources. The group has an overdraft facility of £175,000 in place with Lloyds Bank until August 2024, together with a bank loan of £644,388 as at 31 July 2023. The bank loans bear interest at rates 4.191% and 4.25% and are repayable over 20 years in monthly instalments. Based on discussions with the bank, the Directors have a reasonable expectation that the overdraft facility will be reviewed on an equivalent basis at the renewal date.

The senior management team have prepared a base case cash flow forecast for the period ending August 2025. This has been used to establish and assure the validity of the business as a going concern. The senior management team have also prepared a severe downside scenario forecast as part of this assessment. The assumptions in the downside scenario forecast include the following:

Both the base case forecast, and the severe downside forecast show that the group and the company are expected to operate within the current overdraft facility and will maintain sufficient cash funds to continue to trade.

Consequently, the Trustees are confident that the group and the company will have sufficient funds to continue to meet their liabilities as they fall due and for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

1.3. Basis of consolidation The group financial statements consolidate the financial statements of the charitable company and its subsidiary undertaking, TDR Training Limited, on a line-by-line basis. A separate Statement of Financial Activities for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

18

Training and Development Resource Limited

Notes to the financial statements (Continued)

for the year ended 31 July 2023

1.4 Charitable funds

Unrestricted funds donations and other incoming resources received or generated for the charitable purposes. Unrestricted funds are available to spend on activities that further any of the general objectives of the charity.

Restricted funds are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria is identified to the fund.

1.5 Fixed assets

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

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

Long leasehold land and buildings See Below Plant and equipment Straight line over4 - 5 years Fixtures & fittings Straight line over 2 - 20 years Computer equipment Straight line over 3 - 4 years

The gain or loss on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is credited or charged to income or expenditure. Subsequent costs, including replacement parts, are capitalised only when it is probable that such costs will generate future economic benefits. Any replaced parts or remaining carrying amounts are the derecognised. All other costs of repairs and maintenance are charged to the Statement of Financial Activities.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at the revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent impairment losses. The fair value of the land and buildings is usually considered to be their market value.

Revaluation gains and losses are recognised in other comprehensive income and accumulated equity, except to the extent that a revaluation gain reserves a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluations gains recognised in equity, such gains and losses are recognised in the Statement of Financial Activities.

1.6 Impairment of fixed assets

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

1.7 Fixed asset investments

In the separate accounts of the charity, interests in subsidiaries are initially measured at cos ad subsequently measured at cost less any accumulated impairment losses. Interests in subsidiaries are assessed for impairment at each reporting date. Any impairment losses are recognised immediately in expenditure,

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

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. 19

Training and Development Resource Limited

Notes to the financial statements (Continued)

for the year ended 31 July 2023

eee

1.10 Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement after allowing for any trade discounts due. 1.11 Financial instruments The charitable 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. 1.12 Income Income is recognised when the group has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from charitable activities is recognised as earned, as the related services are provided.

Income from donations and legacies includes core funding and funding of a general nature and is recognised where there is entitlement, receipt is probable and the amount can be measured with sufficient reliability. Deferred income represents amounts received for future years and is released to incoming resources in the year for which it is entitled.

Income from trading activities and investment income is recognised on a receivable basis,

Government grants are recognised at fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where the grant does not specify performance conditions it is recognised in income when proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised asa liability.

1.16 Expenditure Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following headings: Resources expended are included in the Statement of Financial Activities on an accrual basis, exclusive of VAT with irrecoverable VAT shown as a separate cost line. They include:

Charitable activities include all the costs relating to activities where the primary aim is part of the objects of the charity along with the associated indirect costs. Governance costs relate to costs incurred in compliance with the constitutional and statutory requirements of the group.

20

Training and Development Resource Limited

Notes to the financial statements (Continued) for the year ended 31 July 2023

1.17 Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back off costs, personnel, payroll and governance costs which support the charity’s (and the group's) activities. These costs, which have not been directly apportioned, have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in the support costs note.

1.18 Operating leases

An asset and corresponding liability are recognised for leasing agreements that transfer to the charity substantially all of the risks and rewards incidental to ownership (‘Finance Leases’). All other leases are operating leases.

Operating leases — the group as a lessee

The group classifies the lease of properties and equipment as operating leases. Rental charges are charged to the statement of financial activities on a straight line basis over the period of the lease.

Rent free periods or incentives received for entering into an operating lease are accounted for as a reduction to the expense and are recognised on a straight line basis over the lease term.

Operating leases — the group as a lessor

Rental income from operating leases is recognised on a straight line basis over the term of the lease.

1.19 Critical accounting estimates and areas of judgement

In the application of the group’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The trustees consider that there are no significant estimates or judgements in the preparation of the financial statements.

21

Notes to the financial statements (Continued) for the year ended 31 July 2023

Training and Development Resource Limited

eee

  1. Company structure

The company is limited by guarantee. Every member of the company undertakes to contribute to the assets if the company is wound up while he/she is a member or within one year of ceasing to be a member, such amount as may be required not exceeding £1.

3. Comparative Statement of Financial Activities

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |Unrestricted| |General|Restricted|Total|Total| |Fund|Funds|2022|2021| |Notes| |Income|from:| |Donations|and|legacies|4|31,344|180,000|211,344|13,700| |Charitable|activities|5|1,866,845|-|1,866,845|1,635,273| |Other income|6|13,556|-|13,556|141,960| |Total|income|1,911,745|180,000|2,091,745|1,790,933| |Expenditure|on:| |Charitable|activities|9|1,748,029|-|1,748,029|1,801,320| |Total|expenditure|1,748,029|-|1,748,029|1,801,320| |Net movement|in funds|before|transfers|163,716|180,000|343,716|(|10,387|)| |Transfers|180,000|(180,000|)|-|-| |Net movement|in funds|343,716|-|343,716|(|10,387|)| |Reconciliation|of funds:| |Total funds|brought forward|1,223,068|117,619|1,340,687|1,351,074| |Total funds|carried|forward|1,566,784|117,619|1,684,403|1,340,687|

----- End of picture text -----

22

Training and Development Resource Limited

Notes to the financial statements (Continued) for the year ended 31 July 2023

4, Donations
Unrestricted Restricted Total Total
funds funds 2023 2022
£ £ £ £
Donations and gifts - - - 211,344
- - - 211,344
5. Charitable activities income analysis
Unrestricted Restricted Total Total
funds funds 2023 2022
£ £ £ £
Provision of engineering and manufacturing training 2,268,608 - 2,268,608 1,866,845
2,268,608 - 2,268,608 1,866,845
6. Other income
Unrestricted Restricted Total Total
funds funds 2023 2022
£ £ £ £
Commercial income 2,658 - 2,658 13,556
2,658 - 2,658 13,556
7. Investment income
Unrestricted Restricted Total Total
funds funds 2023 2022
£ £ £ £
Bank Interest received 661 - 661 -
661 - 661 -

----- Start of picture text -----
{
----- End of picture text -----

Training and Development Resource Limited

Notes to the financial statements (Continued) for the year ended 31 July 2023 re

8. Net income from trading activity of subsidiary companies and associate company

The charity has a wholly owned subsidiary which is registered in England and Wales; TDR Training Limited.

TDR Training Limited

A summary of the trading results is shown below. Audited financial statements will be filed with the Registrar of Companies.

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Profit &|loss|account|2023|2022| |Turnover|£|£| |Cost|and other income|2,271,926|1,980,401| |of sales|and|administration|expenses|( 2,132,511|)(|1,877,984|)| |Net|profit|139,415|102,417| |A summary|of the|Balance|Sheet|is|shown|below:| |Fixed|assets|31,163|24,176| |Current|assets|697,640|458,172| |Current|liabilities|( 413,349|)|( 276,309)| |Net assets|315,454|206,039|

----- End of picture text -----

24

,

Training and Development Resource Limited

Notes to the financial statements (Continued) for the year ended 31 July 2023

9. Expenditure on charitable activities

9.1 Direct costs

9.1
Direct costs
Total Total
2023 2022
£ £
Staff costs 1,130,794 1,025,443
College costs 326,139 263,333
Direct course costs 5,982 25,797
Travel and subsistence 12,406 10,736
Premises costs 9,352 2,276
Office expenses 25,559 14,624
IT costs 69,329 65,810
Marketing 8,026 44,269
lrrecoverableVAT 39,491 32,705
Finance costs 4,647 535
Otherexpenses 101,297 34,227
1,733,022 1,519,755
9.2
Support costs
2023 2022
£ £
Depreciation 48,859 4,915
Premises costs 180,016 144,584
IrrecoverableVAT 32,311 26,758
Interest payable 33,309 15,320
Taxation 22,644 18,651
Governance costs (note 9.3) 18,176 18,046
335,315 228,274
Total charitable expenditure 2,068,337 1,748,029
9.3.
Governance
2023 2022
£ £
Auditfees 15,000 14,200
Legal & professional fees 3,176 3,846
18,176 18,046

25

Training and Development Resource Limited

Notes to the financial statements (Continued) for the year ended 31 July 2023 eee

10. Net income/expenditure for the year

The group surplus/(deficit) is stated after charging/(crediting)

Depreciation — owned assets

----- Start of picture text -----
||| |---|---| |2023|2023| |£|£| |48,859|4,915|

----- End of picture text -----

11. Auditors remuneration

The auditor's remuneration amounts to an audit fee of £15,000 (2022 - £14,200) and fees for non-audit services of £18,888 (2022 - £18,888).

  1. Analysis of staff costs, Trustee remuneration and expenses, and the cost of key management personnel

Total salary costs analysed by:

----- Start of picture text -----
||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |2023|2022| |Wages|£|£| |and|salaries|963,324|856|946| |National|insurance|contributions|96,450|84,397| |Pension|contributions|92,920|84,100| |1,152,694|1,025,443| |The|number|of employees who|received|total|employee|benefits|(excluding|employer|pension|costs)|of more than| |£60,000|is|as|follows:| |2023|2022| |£60,001|- £70,000|No.4|No.-|

----- End of picture text -----

No trustee received any remuneration or reimbursement of expenses (2022 - £nil).

The key management personnel of the parent charity are detailed in the legal and administrative information. The total employee benefits of the key management personnel of the parent charity were £131,683 (2022 - £72,448). The average headcount of persons employed by the group (including casual and part time) during the year was:

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |2023|2022| |No.|No.| |Directors|of the|Charity|or trading|subsidiary|(paid)|2|4| |Directors|of the|Charity|(unpaid)|7|7| |Apprentices|=|ss| |Staff|36|34| |45|45|

----- End of picture text -----

26

Training and Development Resource Limited

Notes to the financial statements (Continued) for the year ended 31 July 2023

  1. Intangible fixed assets Group
Intangible fixed assets
Group
Negative goodwill
£
Cost or valuation
At 1 August 2022 and 31 July 2023 ( 39,999 )
Amortisation and impairment
At 1 August 2022 (39,999 )
Charge for the year -
At 31 July 2023 (39,999 )
Net bookvalue
At 31 July 2022 =
At31July2023 -

The charity had no intangible assets in the current or prior year.

Amounts recognised in net income and expenditure for the year in respect of negative goodwill comprise the amortisation charge and are included in support costs.

  1. Tangible fixed assets Group
Long leasehold land Plantand Fixtures & Computers Total
and buildings equipment fittings
£ a £ £ £
Cost
At 1 August 2022 2,200,000 9,250 311,508 3,720 2,524,478
Additions - - 22,370 - 22,370
Disposals - - - - -
At 31 July 2023 2,200,000 9,250 333,878 3,720 2,546,848
Depreciation
At 1 August 2022 - 9,250 90,324 3,720 103,294
Charge forthe year - - 48,859 - 48,859
Disposals - - - - -
At 31 July 2023 - 9,250 139,183 3,720 152,153
Net book value
At 31 July 2023 2,200,000 - 194,695 - 2,394,695
At31July2022 2,200,000 - 221,184 - 2,421,184

27

Notes to the financial statements (Continued) for the year ended 31 July 2023 a

Training and Development Resource Limited

14. Tangible fixed assets
Charity
Long leasehold land
and buildings		 Plantand
equipment		 Fixtures&
fittings		 Computers Total
£ £ £ £ £
Cost
At 1 August 2022
Additions
Disposals		 2,200,000
-
-		 9,250
-
-		 279,321
8,273
-		 3,720
-
-		 2,492,291
8,273
-
At 31 July 2023 2,200,000 9,250 287,594 3,720 2,500,564
Depreciation
At 1 August 2022 - 9,250 82,313 3,720 95,283
Charge forthe year - - 41,749 - 41,749
At 31 July 2023 - 9,250 124,062 3,720 137,032
Net book value
At 31 July 2023 2,200,000 - 163,532 - 2,363,532
At31July2022 2,200,000 - 197,008 - 2,397,008

All tangible fixed assets are held for charitable purposes.

The long leasehold land and buildings were formally valued in January 2022 by Avison Young at an open market value of £2,200,000. Trustees have assessed at the 31 July 2023 and considered that this valuation remains appropriate.

If the property was held under historical cost, it would be included at a net book value of £1,053,130 (2022 - £1,105, 130).

28

Training and Development Resource Limited

Notes to the financial statements (Continued) for the year ended 31 July 2023

15. Investments
Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Investment in wholly owned subsidiary
companies
TDR Training Limited - - 1 1
Total investments - -
16. Debtors
Group Group Charity Charity
2023 2022 2023 2022
£ £ £ E
Trade debtors 185,570 175,125 - 893
Prepayments and accrued income 26,271 21,206 8,409 8,764
Other debtors 15,958 80,229 11,843 11,610
227,799 276,560 20,252 21,267
17. Creditors: amounts falling due within one year
Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Bank loans and overdrafts 20 69,889 116,450 69,889 69,889
Trade creditors 84,260 65,235 9,473 17,318
Amounts due to fellow group undertakings - ~ 120,500 202,744
Corporation tax payable 22,644 18,651 - -
Other taxation and social security 29,275 51,392 - -
Other creditors 64,764 19,595 - -
Accruals and deferred income 248,118 120,734 26,240 28,541
518,950 392,057 226,102 318,492
18. Creditors: amounts falling due afterone year
Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Bank loans and overdrafts 574,499 622,181 574,499 622,181
574,499 622,181 574,499 622,181

29

Notes to the financial statements (Continued) for the year ended 31 July 2023

Training and Development Resource Limited

eee

19. Provisions for liabilities

A provision has been put in place and relates to potential amounts owed back to HMRC with respect to CJRS amounts received in previous years.

  1. Borrowings
Group Group Charity Charity
2023 2022 2023 2022
E £ £ £
Bank overdrafts . 46,561 - -
Bank loans 644,388 692,070 644,388 692,070
644,388 738,631 644,388 692,070
Payable within one year 69,889 116,450 69,889 69,889
Payable after one year 574,499 622,181 574,499 622,181
Amounts included above which fall due after five years:
Payablebyinstalments 272,736 342,625 272,736 342,625

The bank loans are secured bya first legal charge on the charity’s long leasehold land and buildings at Q14 Quorum Business Park. They are also secured on an unlimited debenture from the charity and an unlimited debenture and unlimited guarantee from TDR Training Limited, the charity's subsidiary undertaking.

The bank loans bear interest at rates 4.191% and 4.25% and are repayable over 20 years in monthly instalments.

30

Training and Development Resource Limited

Notes fo the financial statements (Continued) for the year ended 31 July 2023

21. Statement of funds

Forthe yearended 31 July2023
Balance at Balance at
1 August 31 July
2022 Income Expenditure Transfers 2023
£ £ £ £ £E
Unrestricted funds
General fund 1,566,784 2,271,927 ( 2,068,337 ) - 1,770,374
Total unrestrictedfunds 1,566,784 2,271,927 ({ 2,068,337 ) - 1,770,374
Restricted funds
The Ron Dodd Scholarship Fund 97,919 - - - 97,919
Sponsorship Trust Activities 19,700 - - - 19,700
Totalrestricted funds 117,619 - - - 117,619
Total funds 1,684,403 2,271,927 { 2,068,337 ) - 1,887,993
For the yearended 31 July2022
Balance at Balance at
1 August 31 July
2021 Income Expenditure Transfers 2022
£ £ £. E £
Unrestricted funds
General fund 1,223,068 1,911,745 ( 1,748,029 ) 180,000 1,566,784
Total unrestrictedfunds 1,223,068 1,911,745 (1,748,029) 180,000 1,566,784
Restricted funds
The Ron Dodd Scholarship Fund 97,919 180,000 - (180,000) 97,919
Sponsorship Trust Activities 19,700 - - - 19,700
Totalrestrictedfunds 117,619 180,000 - (180,000) 117,619
Totalfunds 1,340,687 2,091,745 (1,748,029) - 1,684,403

31

Training and Development Resource Limited

Notes to the financial statements (Continued) for the year ended 31 July 2023

eee

Restricted funds

The Ron Dodd MBE Scholarship Fund — Funds held to provide grants to deserving students facing barriers to either entry or progression.

Sponsored Trust activities —- Funds given to support Charities objectives.

Transfers

The transfers relate to spend on capital assets, restrictions lift once the purchase is made.

22. Analysis of net assets between funds

For the year ended 31 July 2023

For the year endedended 31 July 20232023
Unrestricted Restricted
funds funds Total
£ E £
Fixed assets 2,394,695 - 2,394,695
Net current assets (29,822) 117,619 87,797
Creditors: amounts falling due aftermore than one year ( 574,499 ) - (574,499 )
Provisions for liabilities ( 20,000 ) - (20,000 )
1,770,374 117,619 1,887,993
Forthe yearended 31 July2022
Unrestricted Restricted
funds funds Total
£ £ £
Fixed assets 2,421,184 - 2,421,184
Net current liabilities (232,219) 117,619 (114,600)
Creditors: amounts falling due aftermore than one year (622,181 ) - (622,181 )
1,566,784 117,619 1,684,403

32

Training and Development Resource Limited

Notes to the financial statements (Continued) for the year ended 31 July 2023 eS

in

23. Pension

Defined contribution scheme

The group operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £92,920 (2022 - £84,100).

The defined contribution liability is allocated to unrestricted funds.

24. Related party transactions

The company has taken advantage of the exemption under FRS 102 not to disclose transactions with its 100% owned subsidiary.

R Dodd MBE, a trustee, donated £nil (2022 - £180,000) to the charity during the year. The amount carried forward at 31 July 2023 is £97,919, (2022 - £97,919).

25. Taxation

The charity is exempt from tax on income and gains failing within Section 505 of the Taxes Act 1988 or Section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives. No tax charges have arisen in the charity.

26. Control

The charity is controlled by the Board of Trustees.

33

Notes to the financial statements (Continued) for the year ended 31 July 2023

Training and Development Resource Limited

a

27. Reconciliation of net movement in funds to net cash flow from operating activities

2023 2022
£ £
Net income/(expenditure) forthe reporting period 203,590 343,717
Adjustments for:
Interest payable 33,609 9,091
Interest receivable (661 ) -
Depreciation 48,859 4,915
Loss on disposal of fixed asset - 12,118
Decrease/(increase) in debtors 48,761 ( 8,556)
Increase/(Decrease) in creditors 193,454 ( 12,392 )}
Netcash (used in)/provided by operating activities 527,612 348,893
28. Analysis ofchanges in net debt
1 Aug Cash 31 July
2022 flows 2023
£ £ £
Short term cash borrowings ( 46,561 ) 46,561 -
Long term cash borrowings ( 692,070 ) 47,682 (644,388 )
Total liabilities ( 738,631 ) 94,243 (644,388 )
Cash and cash equivalents 897 378,051 378,948
Totalnetdebt (737,734) 472,294 (265,440 )

34