## **JTL**
**(A company limited by guarantee) Group Consolidated Financial Statements Company Registration No 03958541 Charity No 01080254**
**Year ended 31[st ] July 2022**
**JTL (A company limited by guarantee)**
## **Group Consolidated Financial Statements**
## **Year Ended 31[st ] July 2022**
|**Contents**|**Page No**|
|---|---|
|Charity Reference and Administrative Details|3|
|Trustees’ Annual Report (Including Directors’ Report and Strategic Report)|5|
|Independent Auditor’s Report|26|
|Consolidated Statement of Financial Activities|30|
|Consolidated Balance Sheet|31|
|Charity Balance Sheet|32|
|Consolidated Statement of Cash Flows|33|
|Notes to the Financial Statements|34|
**JTL (A company limited by guarantee)**
**Group Consolidated Financial Statements**
**Year Ended 31[st ] July 2022**
|**Charity registration number**|01080254|
|---|---|
|**Company registration number**|03958541|
|**Trustees**|G Russell (Chair)1, 3, 4(resigned 05.05.22)|
||S Bratt (Interim Chair) (appointed 09.05.22, resigned|
||01.11.22)1,4,7|
||Sir John Low (Chair)1, 4(appointed 01.11.22)|
||J Allott|
||R Clarke2, 3|
||A Eldred2, 3, 8|
||C Fenton7(resigned 08.11.22)|
||A Green (appointed 21.07.22)1|
||G Hall (appointed 25.07.22, resigned 13.02.23)|
||J Lelliott OBE1 2|
||P McNaughton (deceased 17.03.22)1, 4|
||J Poulter (appointed 13.10.22)1,4|
||S Rugg (appointed 11.11.21, resigned 17.02.22)|
||T Shelley5|
||E Staley (appointed 18.07.22)4|
||I Woodland (resigned 19.08.21)1,4|
|**Chief Executive**|J Graham (resigned 31.05.22)|
||P McGuire (Interim) (appointed 01.06.22, resigned 31.12.22)|
||C Claydon (appointed 06.02.23)|
|**Company Secretary**|C Turner|
|**Registered Office**|Stafford House|
||120-122 High Street|
||Orpington|
||Kent|
||BR6 0JS|
|**Auditors**|Menzies LLP|
||Centrum House|
||36 Station Road|
||Egham|
||Surrey|
||TW20 9LF|
|**Solicitors**|Stone King LLP|
||Boundary House|
||91 Charterhouse Street|
||London|
||EC1M 6HR|
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**JTL (A company limited by guarantee)**
**Group Consolidated Financial Statements**
## **Year Ended 31[st ] July 2022**
**Bankers** Barclays Bank PLC 1 Churchill Place London E14 5HP **Investment Managers** Barclays Wealth Management 1 Churchill Place London E14 5HP
## **Board Sub Committees and Membership**
1 Investments 2 Finance, Audit & Risk 3 Quality and Standards 4 Remuneration 5 Equality, Diversity & Safeguarding 6 Health & Safety 7 CompEx Certification Limited (formerly JT Limited) 8 Develop Training
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**JTL (A company limited by guarantee)**
**Trustees’ Annual Report (Including Strategic Report)**
## **Year Ended 31[st ] July 2022**
## **Structure, Governance and Management**
The Trustees (who are also Directors of the charity for the purposes of the Companies Act) present their report and the audited financial statements of JTL (the charity and the group) for st the year ended 31 July 2022.
The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document, the Companies Act 2006, the Charities Act 2011 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. st (FRS 102) (effective 1 January 2019).
Within the Trustees’ Annual Report is the strategic report, required under S414c(11) of the Companies Act 2006, which contains the following headings:
- Coronavirus Pandemic
- Achievements and Performance
- Financial Review
- Reserves Policy
- Remuneration Policy
- Public Benefit
- Principal Risks and Uncertainties
## **Trustees of the Charity**
The Directors of the charitable company are its Trustees for the purposes of charity law. The Trustees who have served during the year and to the date of this report are as follows:
## **Electrical Contractors’ Unite the Union Independent Association**
- Andrew Eldred
- Alastair Green (appointed 21.07.22)
- Greg Hall (appointed 25.07.22, resigned 13.02.23)
- Paul McNaughton (deceased 17.03.22)
- Steve Rugg (appointed 11.11.21, resigned 17.02.22)
- Elizabeth Staley (appointed 18.07.22)
- John Allott
- Richard Clarke
- Jason Poulter (appointed 13.10.22)
- Ian Woodland (resigned 19.08.21)
- Steve Bratt (Interim Chair) (appointed 09.05.22, resigned 01.11.22)
- Chris Fenton (resigned 08.11.22)
- John Lelliott
- Sir John Low (Chair) (appointed 01.11.22)
- Geoff Russell (Chair) (resigned 05.05.22)
- Tracey Shelley
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**JTL (A company limited by guarantee)**
**Trustees’ Annual Report (Including Strategic Report)**
**Year Ended 31[st ] July 2022**
## **Charitable Objects**
The charity's objects set out in its Articles of Association are “to encourage training of persons employed in the electrical installation engineering industry and such other industries as the Trustees may decide”.
The charitable company's principal activities during the year were the delivery of Advanced Apprenticeships in Electrotechnical, Plumbing, Engineering and Heating and Ventilating.
## **Vision and Values**
JTL's vision is:
To be the training organisation of choice to the building services engineering sector.
The company’s values have proved more important than ever during the challenging times encountered in 2021/22 and beyond.
## **Structure and Members**
rd JTL is a charitable company limited by guarantee and was set up on 23 March 2000. Formerly, the company operated as JT Limited which was incorporated in 1989. JTL's company registration number is 03958541 and its charity number is 01080254. The charity is governed by its Articles of Association.
The company's members are Unite the Union and the Electrical Contractors' Association. The members have a liability not exceeding £10 per member.
## **Recruitment and Training of Trustees**
The Articles of Association entitle Unite the Union and the Electrical Contractors' Association to each appoint up to four Trustees and a further independent Trustee to be Chairman. The Trustees may appoint up to a further four independent Trustees. The company is administered by the Board of Trustees, with the Chief Executive (appointed by the Trustees) managing the day-to-day operations of the charity.
Trustee recruitment is undertaken in accordance with the Articles of Association. Induction and
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**JTL (A company limited by guarantee)**
**Trustees’ Annual Report (Including Strategic Report)**
## **Year Ended 31[st ] July 2022**
training are provided by the management and company's professional advisors on a regular basis.
## **Related Parties**
The principal transactions with related parties are with the Joint Industry Board for the Electrical Contracting Industry (JIBECI) and the Joint Industry Board for Plumbing and Mechanical Engineering Services (JIB PMES). This relates to the registration of all apprentices with the relevant Joint Industry Board for the purpose of receiving apprentice cards and cards recognising their craft competence at the end of the apprenticeship. The registration fees are agreed annually with the relevant JIB and formalised in an annual agreement signed by each organisation.
The arrangement is believed to provide added value to JTL apprentices and is subject to regular review by the JTL Board.
## **Compliance with Trustees’ Duties under Section 172(1) Companies Act 2006**
Trustees must act in the way they consider, in good faith, would be most likely to promote JTL’s success to achieve its charitable purposes. The Trustees, in doing so, delegate day to day management and decision-making to the Chief Executive and other members of the Executive Management Team, who are required to act to further JTL’s strategy and to ensure that activities are carried out in compliance with agreed plans and policies and external regulations and in accordance with JTL’s values. The Trustees receive regular reports on JTL’s performance and plans. In carrying out their duties, the Trustees have regard (amongst other matters) to:
## **The likely long-term consequences of any decision**
The Trustees contribute proactively to JTL’s strategic vision and three-year plan which was especially important following the Covid pandemic and in the light of on-going uncertainties. They also reviewed, amongst other plans, the IT Strategy and Financial plans. The long-term likely impact of the plans for JTL has been considered as well as the consequences of their decisions.
## **The interests of the charity’s employees**
Trustees had oversight of the on-going impact of Covid-19 on ways of working for JTL staff throughout the pandemic and its aftermath. They reviewed the steps in place to promote staff health and wellbeing, including means of keeping in touch with those working from home. We have continued to implement our approach to good people management and career progression to enable our staff to fulfil their potential, with a specific focus on under-represented groups and in line with our safe, feminist and anti-racist principles.
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**JTL (A company limited by guarantee)**
**Trustees’ Annual Report (Including Strategic Report) Year Ended 31[st ] July 2022**
## **The need to foster the charity’s business relationships with suppliers, customers and others**
JTL continually strives to make partnerships with suppliers, customers, and others more equitable, collaborative and with a view to gaining better value for money and improving the learner experience.
## **The impact of the charity’s operations on the community and the environment**
The organisational structure is designed to enable us to become a safe environment for all stakeholders that come in contact with JTL, especially employees and learners. We have continued to invest and improve our safeguarding to ensure that we better protect all those with whom we work. Risks relating to Safeguarding are considered and debated by the Board, which receives quarterly reports on safeguarding casework and progress, including against agreed key performance indicators.
## **Maintaining a reputation for high standards of business conduct**
JTL strives to achieve its strategic goals; we lead by example by demonstrating in all areas the same values that we wish to see in the people we work with and those we aim to influence. Further, our values and the behaviours we want to see, including our commitment to safeguarding, are embedded in our staff recruitment, induction, and appraisal procedures.
## **Governance and Key Management Personnel**
The governance of JTL takes the form of a non-executive Board of Trustees which meets quarterly. In addition, there are formal Board Sub-Committees including Investment, Remuneration, Finance, Audit & Risk and Quality & Standards. The Board has agreed formal Standing Orders for its own operation and formal Terms of Reference for each of the SubCommittees.
In addition to the above, there are further two Sub-Committees formed to cover Health and Safety and Equality, Diversity and Safeguarding. Board representatives meet regularly with the executive on these matters and report formally back to the Board of Trustees.
Regular skills audits of Board members are conducted in order to ensure that, across its membership, it has a good understanding of all key areas of business undertaken by and relevant to JTL. The results are reviewed by the Board and the outcomes influence subjects for future training for Board members.
The Board also conducts an annual self-evaluation of its performance. The evaluation is
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**JTL (A company limited by guarantee)**
**Trustees’ Annual Report (Including Strategic Report)**
**Year Ended 31[st ] July 2022**
influenced by the Charity Governance Code and the Code of Good Governance for Independent Training Providers published by the Association of Employment and Learning Providers (AELP). The results of the self-evaluation are considered by the Board and appropriate action taken to address areas for improvement.
The Board delegates the day-to-day operations of JTL to the executive team through a formal Delegated Levels of Authority document which is reviewed periodically by the Board. The executive team is led by the Chief Executive supported by the Executive Management Team (EMT) which consists of the following roles, each with responsibility for defined functions within the business:
- Chief Operating Officer
- Director of Learning & Innovation
- Director of Policy & External Relations
- Human Resources Director
- Interim Director of Finance
- National Delivery Director
The Chair and Chief Executive both left for new positions during the latter part of 2021/22 and, while recruitment for their successors took place, an interim Chair was appointed. The Chief Operating Officer became interim Chief Executive and a temporary Finance Director was appointed. The interim Chair and Board offered regular support and monitoring to ensure sound continuity of operations during the recruitment process.
## **Key Management Personnel Remuneration**
The key management personnel of the charity include the Trustees and the EMT.
The Trustees of the charity give their time freely and are not remunerated.
The Chief Executive’s remuneration is set annually by the Remuneration Committee. The Remuneration Committee is made up of the Chairman and three other trustees nominated by the ECA, Unite the Union and the independent directors. It is the responsibility of the Chief Executive to set the pay of the EMT.
The Remuneration Committee also has responsibility to consider the recommendation of the Chief Executive regarding the overall remuneration of the organisation. This recommendation is based on organisational and staff performance, market testing conducted by the HR Director, Consumer Price Index data and feedback from the members on their likely pay awards. The decision of the Remuneration Committee is then applied through a performance related pay process led by the Chief Executive and EMT.
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**JTL (A company limited by guarantee)**
**Trustees’ Annual Report (Including Strategic Report)**
**Year Ended 31[st ] July 2022**
## **Employees**
The average monthly full-time equivalent number of employees of JTL for the year ended st 31 July 2022 was 366 (2021: 382).
JTL communicates with its staff through a number of channels including regular executive blogs, webinars, newsletters, EMT and Senior Management Team (SMT) meetings, other manager and staff meetings, a staff forum and the intranet. The annual staff conference, which was cancelled in 2021 due to the Coronavirus pandemic, was successfully reinstated in 2022.
JTL ensures that no discrimination is shown on the grounds of any protected characteristics such as: race, colour, nationality, ethnic or national origin, gender, gender reassignment, religion or belief, sexual orientation, age, marital status including civil partnerships, pregnancy and maternity, caring responsibilities or disability (the latter is subject to the industry's safety requirements).
Rewarding everyone fairly, regardless of gender, is at the heart of the JTL leadership team’s agenda. However, women are under-represented in the building services engineering sector and assessors are required to be occupationally competent in their discipline, which currently limits the number of female applicants. Our gender split is currently 70% male and 30% female which reflects JTL’s reliance on a nationwide team of occupationally competent assessors, predominantly male, who account for 37% of its total workforce.
**----- Start of picture text -----**
JTL Gender Gap Proportion of
relevant
Hourly Pay Annual
employees Number with
Differential Bonus
with bonus bonuses
Differential
pay
Mean 20.3% (17.4%) 44.5% (-82.7%)
Median 28.5% (17.8%) -16.1% (-127.8%)
Male 9.1% (1.4%) 23 (4)
Female 10.2% (0.9%) 14 (1)
**----- End of picture text -----**
This is not a pay but a representation issue. All JTL recruitment is based on competence and not gender, race, creed or orientation. The majority of female employees are in lower paid administrative functions. The move to having JTL centres and tutors will have a positive impact
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**JTL (A company limited by guarantee) Trustees’ Annual Report (Including Strategic Report)**
**Year Ended 31[st ] July 2022**
on the gap as more female tutors are likely to be available.
JTL acknowledges its responsibilities in relation to tackling modern slavery and commits to complying with the provisions of the Modern Slavery Act 2015. The organisation understands that this requires an ongoing review of both its internal practices in relation to its labour force and, additionally, its supply chains. No labour provided to JTL in the pursuance of its services is obtained by means of slavery or human trafficking.
JTL is a Disability Confident Employer and actively seeks to attract and recruit disabled people by providing a fully inclusive and accessible recruitment process. We interview all disabled people who meet the minimum criteria for our vacancies. We are supportive of our employees who may become disabled during their employment and proactively offer and make reasonable adjustments as required. We encourage training, career progression and promotion for all disabled persons employed by the company. We expect all our employees and people working with us to treat all people with respect and ensure that appropriate disability equality awareness briefings take place on a regular basis.
JTL has an obligation to meet the Prevent Duty requirements as defined by the Counter Terrorism and Security Act 2015. In meeting this duty, JTL has developed a training programme for all staff, has a Prevent strategy in place and has amended its policies and key documents to reflect the Prevent Duty. A staff working group is in place to focus on Equality, Safeguarding and Prevent and meets half-yearly to provide updates to all staff as appropriate.
## **Aims and Objectives**
The JTL Executive Management Team present to the Board, who annually approve, a rolling three-year organisational strategy, and underpinning one-year business plan. The five strategic goals of the organisation are to:
- Increase our learner numbers and market share in our core apprenticeships year on year.
- Improve our financial resilience, sustainability and results.
- Continue to diversify and grow our products and services to better meet the changing needs of the industry and its workforce.
- Enhance and innovate (our processes and systems) to enable us to be a great, highquality organisation: responsive to our learner and employer needs with a minimum Grade 2 “Good” Ofsted; and
- Recruit and retain great people and be a great place to work.
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**JTL (A company limited by guarantee) Trustees’ Annual Report (Including Strategic Report)**
**Year Ended 31[st ] July 2022**
The Trustees believe that, despite the challenges faced during 2021/22, JTL has made good progress against its charitable objects and its strategic and business plan objectives.
## **Public Benefit Statement**
The Trustees have had regard to their responsibilities in demonstrating public benefit as set out in guidance provided by the Charity Commission. The charity has and continues to demonstrate a number of areas of public benefit within its core charitable objective of the advancement of education, in the form of advanced apprenticeship training, achieving high levels of success through the support and mentoring offered throughout the typically four-year apprenticeship period.
Given the challenges faced during and following the pandemic, JTL has paid particular attention to mental health support for its learners, many of whom were badly affected by the uncertainties of the situation and the impact on their learning, employment and family circumstances. JTL partners with the Electrical Industries Charity to offer targeted support for individuals in particular need.
The impact on beneficiaries is through the training of persons employed in, or wishing to enter, the building services engineering sector to obtain qualifications for life. In doing so this ensures the success and prosperity of the sector by supporting and improving an appropriately trained and skilled workforce. The high achievement rates of JTL apprentices are a good indicator of the effectiveness of its programmes and therefore the value for money obtained for the public purse.
JTL also continues to offer its employer grant schemes including an adoption grant for employers who take on apprentices who have been made redundant during their apprenticeship to help them complete their apprenticeship successfully.
JTL also offers Traineeships which are a Government-funded scheme, which last up to 16 weeks. These prepare young people who are not yet ready for an apprenticeship, with skills which will help them with future employment as well as giving work experience which may lead to employment. Greater emphasis on initial advice and guidance and initial assessment supports JTL’s No Wrong Door strategy which ensures all learners are given the appropriate support and guidance to meet their individual needs in making choices about their career in the industry.
JTL provides all its apprentices with free, high-quality textbooks, learning materials and toolkits to support their progress and achievement without the need to incur the costs associated with such purchases.
It is also apparent that charitable status is attractive to colleges of further education who are more willing to work with JTL in innovative partnership arrangements than is otherwise the
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**JTL (A company limited by guarantee) Trustees’ Annual Report (Including Strategic Report)**
**Year Ended 31[st ] July 2022**
case with profit seeking providers. Such arrangements are proving beneficial to learners and employers and are providing improved services to local communities.
All apprenticeship courses are fully accessible and available free of charge to its learners, as the costs are met by the government and employers or are underwritten by JTL’s charitable funds.
JTL offers our apprentices a chance to stay in touch and continue their development through JTL Toolbox, a free online support package specifically aimed at employers and those who have completed or are near to completing their apprenticeship. Power Up is a CPD platform within Toolbox which offers free taster training sessions to electricians which will help them in their day-to-day job role and support their continued professional training needs.
## **Energy and Carbon Reporting**
JTL recognises the climate crisis and the need for everyone to take action to address this global threat. The charity commenced Standard Energy and Carbon Reporting (SECR) disclosures on energy and carbon in 2020/21.
However, JTL has been in scope of the Government’s Energy Saving Opportunity Scheme (ESOS) since 2015. Acting on both the four-yearly ESOS audit output and the annual SECR returns, JTL has significantly reduced its total carbon output during the period under review from 772.64 tonnes to 401.2 tonnes.
## **SECR Methodology Statement 2021**
The analysis below is based on the audit and review activity undertaken by Infinite Utilities Limited. It includes the Total Energy Calculation (including the significant energy consumption), Profiling of Site Energy data, Analysis of Transport, and Energy Audits of JTL’s Training Centres and Offices where direct billing is available.
**----- Start of picture text -----**
Type of
Fuel kWh Kg CO2e T CO2e % of Total
Emissions
Electricity 357,799 75,971 76.0 21%
Gas 170,230 31,179 31.2 10%
Company Vehicles
Direct 134,724 32,565 32.6 8%
(Petrol)
(Scope 1)
Company Vehicles
268,454 64,887 64.9 16%
(Diesel)
Sub Total 931,207 204,603 204.6 54%
Indirect Company Vehicles
N/A 247 0.2 0%
(Scope 2) (Electric)
**----- End of picture text -----**
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**JTL (A company limited by guarantee)**
## **Trustees’ Annual Report (Including Strategic Report)**
## **Year Ended 31[st ] July 2022**
**----- Start of picture text -----**
Business Travel
(Own User Petrol 249,481 62,707 62.7 15%
Vehicles)
Indirect Other
Business Travel 532,585 133,637 133.6 31%
(Scope 3)
(Own User Diesel
Vehicles)
Sub Total 782,066 196,344 196.3 46%
Total 1,713,273 401,194 401.2 100%
**----- End of picture text -----**
Due to reporting limitations the above table does not consider energy consumption by Develop Training Limited. Reporting will be updated to include Develop Training Limited from 2022/23.
The significant reductions have been achieved in the following areas:
- **Electricity – 56.43 Tonne Co2e Reduction**
Achieved by leaving existing Mill Wharf property in Birmingham and creating energy efficient centre at Rocky Lane and post Covid-19 alternative working arrangements in offices.
## **Gas – 13.68 Tonne Co2e Reduction**
Achieved by leaving existing Mill Wharf property in Birmingham and creating energy efficient centre at Rocky Lane and post Covid-19 alternative working arrangements in offices.
## **Company Cars – 107.889 Tonne Co2e Reduction**
Achieved through refreshed company car policy to include additional allowances for EVs, PHEVs under 75g Co2, driver self-selection of low emission ICE vehicles.
## **Own User Cars – 193.30 Tonne Co2e Reduction**
Achieved as a result of alternative working methods of field staff with fewer site visits per staff member than in the previous year under review. Own car users are also self-selecting, newer, more efficient petrol vehicles. Own user diesel car total carbon output for company mileage reduced by 180 tonnes CO2e during the year.
The long term impact of Covid-19 on working practices, in particular the mix of home and office working we believe has somewhat stabilised. Changing working practices in the future, as we move to a new normality may result in slight increases as office use returns to near normal. To mitigate this, we will continue to review, heating, cooling and lighting solutions following investment appraisals and the output recommendations from our ESOS audits.
Our positive intervention on transport mix means this element is no longer our greatest carbon contributor. Indeed, from the table above our company carbon split is almost 50/50 across transport and buildings. Whilst the greatest gains (a reduction of 400 Tonnes) have
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**JTL (A company limited by guarantee)**
## **Trustees’ Annual Report (Including Strategic Report)**
## **Year Ended 31[st ] July 2022**
been achieved, further improvements of volume may be difficult to attain without significant investment and especially in a period of growth of our own centres. However, we will continue
to:
- Encourage company car users to move away from petrol and diesel cars to hybrid and fully electric cars. For renewals to 2024, we would expect a company car carbon output to be maintained at around 100 tCO2e based on the current reordering trend.
- Review potential solutions to encourage own car users to move away from high carbon emitting vehicles. This could include salary sacrifice schemes to provide a car under 75gCo2 pre-Tax/NI to own users. It is also likely that increases in vehicle excise duty, fuel pricing, and the extension of clean air zones will encourage self-selection of cleaner vehicles at natural replacement.
With regards to property, we have already taken steps towards reducing carbon emissions including moving our Birmingham training centre - from an energy inefficient building (with poor insulation, old plant equipment including 3 gas boilers and a mix of inefficient incandescent and fluorescent lighting, and windows, which accounted for 65% of building fabric, which were single glazed, leaked energy and provided no thermal properties) - to a new building designed with a journey toward Net Zero in mind (including LED lighting, efficient VRF Heat pumps as a main source of heating and cooling, carbon absorbing laurel hedging around the perimeter boundary and photovoltaic roof panels and EV chargers). The estimated saving is a 40% reduction in carbon output on a property which is 20% larger.
All new centres (currently Norwich, Eastbourne and Hull) are being designed and developed with energy efficient measures built to include as a minimum, low energy lighting schemes, combined VRF heating and cooling systems where economically practical, improved insulation and water consumption reduction measures. As our estate evolves based on operational requirements assessments on building fabrics and energy use is reviewed and designed in by our appointed RICS surveyor and internal infrastructure and projects team.
Further potential energy savings will be considered on an on-going basis and as JTL expands and improves its estate.
## **STRATEGIC REPORT**
## **CORONAVIRUS PANDEMIC**
The world faced unparalleled adversity in the Coronavirus pandemic (Covid-19) which had a devastating global effect on people, businesses, economies and governments commencing in the second half of 2019/20 and continuing throughout 2020/21 and into 2021/22. Despite efforts by the UK government to implement extraordinary business support measures, JTL
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**JTL (A company limited by guarantee)**
**Trustees’ Annual Report (Including Strategic Report)**
**Year Ended 31[st ] July 2022**
experienced the consequences of the pandemic as it impacted the sector. The total loss of the anticipated recruitment of c600 new apprentices between April and July 2020 and reduced
recruitment in 2020/21 will impact for the four years that those individuals should have been in learning. Furthermore, and despite our best efforts with remote delivery, the learning and progression of apprentices in learning (furloughed or not) was unavoidably disrupted during the pandemic and continues to require remedial catch-up learning. AM2 centres were shut for a number of months which prevented anticipated completions being achieved resulting in a backlog which still needs clearing in addition to the new planned completions.
Nevertheless, the building services engineering sector bounced back quite healthily in 2021/22 as did apprentice recruitment. It was possible for field staff to resume visits to employers and apprentices and some return to a semblance of normality has been possible during 2021/22.
## **ACHIEVEMENTS AND PERFORMANCE**
## **Management**
The EMT initially set out a three-year strategy - with a view to this being reviewed and updated on a rolling annual basis - framed around the vision to be the training organisation of choice to the building services engineering sector, supporting the organisation’s drive to pursue a journey from “good to great”.
In 2021/22, and despite on-going uncertainties, the JTL Board and Executive agreed that it was appropriate to return to the three-year Strategic Planning cycle following the rollover arrangements in 2020/21 due to the pandemic. A three-year Strategic Plan and one-year Business Plan were therefore agreed for 2021/22 which focussed on recovery and stability.
We continue to work with our delivery partners but also opened more of our own training centres to support our employers and learners as appropriate.
The EMT is supported by a Senior Management Team (SMT) comprising the next tier of performance management within the company which is made up of Heads of Departments and Heads of Learning and Assessment. The EMT and SMT meet and work together to continuously improve JTL’s performance.
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**JTL (A company limited by guarantee)**
**Trustees’ Annual Report (Including Strategic Report)**
**Year Ended 31[st ] July 2022**
## **Statistics**
During the year JTL:
- recruited 2,453 (2021: 2,106) apprentices.
- delivered 1,425 (2021: 1,143) apprentice achievements.
- market share in the core electrotechnical discipline is 31.6%
- According to ESFA published data, JTL’s overall achievement rate was 61.4% (2020/21: 63.6%). This compares with a national average of 57.7%. Due to the Covid- 19 pandemic, the ESFA has not published any timely achievement rates.
- At 31[st ] July 2022, JTL had 7,467 apprentices in training.
## **College Partners and JTL Centres**
JTL continues to fund all college fees for its apprentices in training to enable them to successfully complete the appropriate off-the- job learning elements of the apprenticeship. JTL employs occupationally qualified and competent field staff who regularly monitor, review and assess the apprentices' progress.
The core business model is for JTL to work with delivery partners where the quality is good, and it meets employer needs. However, where this model has proved unsatisfactory in terms of quality or financial viability of provision, JTL has continued its strategy of developing its own centres. It now operates its own training from the following centres:
- Ashford
- Bedford (college partnership)
- Birmingham
- Bury (college partnership)
- Carlisle
- Maidstone (college partnership)
- Norwich
- Nottingham
- Orpington
- Oxford
- Preston (college partnership)
- Telford
- Tankersley (South Yorkshire)
- York
JTL also operates a training centre in exclusive partnership with P & R Hurt in Yeovil.
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**Trustees’ Annual Report (Including Strategic Report)**
## **Year Ended 31[st ] July 2022**
## **Quality**
Quality is a key factor in assessing the effect of our training on both employers and apprentices. The Education Inspection Framework and Self-Assessment Report form a key foundation of JTL's quality activities to help maintain a clear focus on Ofsted priorities. In November 2016, JTL was re-inspected by Ofsted and once again achieved a "Grade 2 - Good" inspection report. JTL’s focus on the quality of its provision results in it continuing to have achievement rates well
above the national average in its core disciplines of electrotechnical and plumbing.
In addition, JTL holds BS EN ISO 9001:2008 for quality management systems and it has held the Investors in People (lIP) standard since 1995 (most recently re-assessed in 2021) and the Matrix standard since 2012 (which was also successfully reassessed in 2021). In 2020, JTL was re-accredited with Committed 2 Equality and maintained its Gold standard for Equality.
CompEx Certification Limited has also been accredited by UKAS to ISO 17024:2012 in respect of its CompEx operations since 2010 (re-audited in 2021).
JTL employs a rolling internal audit programme which includes delivery partner inspections.
## **Equality, Diversity and Safeguarding**
JTL is committed to a policy of equality and diversity for everyone. No applicant for a training scheme place with JTL, apprentice, customer or member of staff shall knowingly receive less favourable treatment on the protected characteristics, nor will any other condition or requirement that cannot be justified disadvantage them.
JTL is also committed to safeguarding and promoting the welfare of children and young people and expects all staff to share this commitment. This has been of particular importance during the Covid-19 lockdown period where learners have been particularly vulnerable to mental health and wellbeing issues. We have taken additional steps to stay in touch with our learners during this period to monitor their welfare.
The building services engineering industry is generally regarded as a white, male industry and JTL continues to address this stereotyping through its growing apprentice ambassador scheme which sees existing female and Black, Asian, Minority Ethnic (BAME) apprentices working with schools and at careers events to promote the opportunities in the industry as well as to network with each other.
18
**JTL (A company limited by guarantee)**
**Trustees’ Annual Report (Including Strategic Report)**
**Year Ended 31[st ] July 2022**
## **FINANCIAL REVIEW**
The JTL strategy set out by the Executive Management Team includes, as one of its five objectives, a strategic objective of improving financial management and performance. This included specifically delivering a positive overall net movement of funds and, within that, moving JTL from an operating deficit to an operating surplus.
The principal funding source is the Department for Education’s Education and Skills Funding Agency. The charity uses this income source to further its aims and objectives including increasing apprentice learner numbers, increasing market share and enhancing and innovating its provision.
No fundraising is carried out and any income from investments is generated via a responsible and ethical approach implemented by the Investment Managers, Barclays, which, amongst other things, excludes investment in Tobacco, Arms, Gambling and Pornography.
The Consolidated Statement of Financial Activities for the year shows an operating loss for the year of £3,006,807 (2021: Loss £4,339,947). Net movement in funds for the year amounted to £3,437,188 (2021: £2,228,670) after investment losses of £472,272 (2021: gain of £7,032,647) and taxation. This resulted in a net asset position, all held as unrestricted funds as at 31[st] July 2022, of £42,564,824 (2021: £46,002,012). The Trustees are satisfied with the net asset position at the year end and are confident that sufficient funds are available to meet future needs.
For the charity alone, total income for the year amounted to £32,817,824 (2021: £28,203,803), with a net reduction in funds of £3,276,802 (2021: gain of £2,737,971). Total donations to JTL from CompEx Certification Limited and Develop Training Group Limited under the Gift Aid scheme in the year to 31[st] July 2022 was £183,482 (2021: £0). The 2021 profit amount was not accrued at the end of the year following clarification of Financial Reporting Standard 102. The subsidiaries had total income for the year of £8,431,432 (2021: £7,737,596) and costs of £8,452,791 (2021: £7,780,301) which is in line with strategy and expectation.
## **Finance, Audit and Risk Committee (FARC)**
The Finance, Audit and Risk Committee was active throughout 2021/22. In addition to standard agenda items covering company and financial performance, internal and external audit activity and preparation of the financial statements, the Committee also considered a number of items in focus at its meetings. These included:
19
**JTL (A company limited by guarantee)**
## **Trustees’ Annual Report (Including Strategic Report)**
## **Year Ended 31[st ] July 2022**
- Audit findings 2020/21
- Group Audit Plans
- Complaints Policy
- GDPR Policy
- Hull business case
- New finance system
- Reserves Policy
- Risk Management Policy
- Safeguarding
## **Investments**
Under the Articles of Association, the charity has the power to make any investments which the Trustees see fit.
In terms of investment funds, JTL's objective is to achieve capital growth, whilst maintaining a balanced risk profile over the medium term and to deliver annual net gains to support the consolidated financial position, as set out in the three-year strategy. JTL’s funds are managed solely by Barclay’s Wealth with funds invested on a medium risk profile.
In terms of socially responsible investing, regular discussions are held at the JTL Board, JTL Investment Committee and with the investment managers regarding the approach taken on behalf of JTL. The Investment Committee is aware that the investments are managed by the charity department of Barclays who have an established ethical investing offering. This is made up of a 3-stage process that includes:
- A negative screen which is applied using MSCI ESG Business Involvement Screening Research to remove companies whose primary businesses are focused around tobacco, alcohol, armaments, gambling, adult entertainment or fossil fuels.
- Independently calculated MSCI ESG results are then used to remove companies that do not meet a minimum threshold around environmental, social and corporate governance characteristics.
- Positive Analysis - Companies are identified that help to address at least one of the UN’s Sustainable Development goals.
During the year, the overall return of the portfolio was -0.93%. The JTL portfolio has performed comparatively better than the ARC (Asset Risk Consultants) Sterling Steady Growth Charity Index which delivered a return of -2.46% during the same period.
20
**JTL (A company limited by guarantee)**
**Trustees’ Annual Report (Including Strategic Report)**
**Year Ended 31[st ] July 2022**
## **Subsidiaries**
In addition to the investment funds, JTL has two wholly owned subsidiaries, CompEx Certification Limited and Develop Training Limited.
## **CompEx Certification Limited** (formerly JT Limited)
The principal business of CompEx Certification Limited is the operation of the CompEx Certification Scheme. The CompEx Scheme is the global solution for validating core competency of employees and contract staff of major users in the gas, oil and chemical sectors
for both offshore and onshore activities.
CompEx Certification Limited has, under contract to the Engineering Equipment and Materials Users Association (EEMUA), managed and operated the CompEx Scheme since it was developed in 1994 and, in April 2014, acquired the Scheme from EEMUA.
## **Develop Training**
When JTL acquired Develop in September 2019, it comprised a group of four companies:
- Develop Training Group Limited (DTGL)
- Develop Training Limited (DTL)
- Develop Solutions Limited (DSL)
- Develop Training Employee Benefit Limited (DTEBL)
The intention is to close all but Develop Training Limited. Develop Solutions Limited was dissolved on 7th April 2020. Develop Training Employee Benefit Limited was dissolved on 7[th ] December 2021 and Develop Training Group Limited was dissolved in December 2022.
Develop is an accredited provider of compliance, technical, and safety training for the utilities and construction, defence, healthcare, facilities management, and telecommunication sectors.
Develop Training Limited, a predominantly commercial course provider was acquired to compliment and provide a source of funds to the JTL group to further its charitable aims. A plan to turn around Develop Training Limited from the current loss-making position to making profits is currently in progress and will be achieved through review, management and efficiencies through the use of shared resources with JTL.
21
**JTL (A company limited by guarantee)**
**Trustees’ Annual Report (Including Strategic Report)**
## **Year Ended 31[st ] July 2022**
## **Reserves Policy**
The general reserves of the group at 31 July 2022 were £42,564,824 of which £9,375,992 is represented by tangible and intangible fixed assets. Free reserves, defined as excluding such funds attributed to these assets, were £33,188,832.
The current reserves policy requires that unrestricted funds held by the charity should be more than six months (£21,809,224) and less than twelve months (£43,618,448) of the resources expended. After allowing for factors detailed in Charity Commission guidance for best practice, the charity’s reserves are in line with this policy. At this level the charity would be able to continue its activities until arrangements could be found to transfer and fund the transfer of the training of apprentices under its managing agency to another organisation.
In addition, the Reserves Policy was reviewed and amended by the Finance, Audit and Risk
Committee during the year to reflect the need for digital and technological improvements, capital investments in new JTL training centres and potential acquisitions. It was also agreed that the Finance, Audit and Risk Committee would have an annual review, to support the next strategic and business planning cycle to update and restate JTL's Reserves Policy to ensure that the level of reserves is reasonable to cover all operational and other commitments.
The Trustees consider that in light of the above and the current economic climate, the amount in reserves is appropriate.
## **Principal Risks and Uncertainties**
The Board ensures, through the specific delegation of responsibilities, that the Executive Management Team will manage significant business risks through a combination of risk identification, analysis, evaluation, control and action planning so as to contain risk within limits acceptable to the Board.
In line with JTL's risk management policy and framework, risks are logged on JTL's risk register and reviewed regularly. The most significant risks are then reviewed and discussed monthly by the Executive Management Team and quarterly by the Finance, Audit & Risk Committee and reported to the Board.
The most significant risks currently identified are:
- Covid -19 and related operational and financial implications
- Poor Ofsted inspection outcome.
- Loss of learner, staff and/or employer personal identifiable data.
22
**JTL (A company limited by guarantee) Trustees’ Annual Report (Including Strategic Report) Year Ended 31[st ] July 2022**
The Trustees have assessed these major risks and are satisfied that adequate steps are being taken to mitigate exposure and reduce the risks.
## **Plans for future periods**
JTL’s core business is delivering high quality apprenticeships to the building services engineering sector. The strategy is to continue to concentrate on this sector but to expand the range of training offered including to some of the smaller, more specialist areas of the industry. In addition to our apprenticeship provision, we are strengthening our preapprenticeship/traineeship programme.
The JTL three-year strategy and annual business plan set out specific targets to grow our learner numbers and our market share. Our preferred option continues to be a mixed delivery model strategy with our partners, but it is also likely that we will increase the levels of our
direct delivery at our own current and new centres.
While the building services engineering sector is predominantly made up of SME/micro businesses, we are also continuing to improve our engagement with national accounts in order to support our employers in utilising the apprenticeship levy.
JTL remains committed to the implementation of a technology strategy and have set out a digital journey. This includes increased automation of systems and processes plus e- documentation, e-portfolios and a new customer relationship management system.
Underpinning everything we do is our focus on the quality of our provision and ensuring that we not only meet but exceed the expectations of our customers, learners, funding bodies and the industry. In doing this we also want to be an enjoyable, fulfilling and exciting place to work, an organisation which people are proud to be part of and one which rewards excellence and achievement. Simply put, we want to be a great place to work and a great organisation to work with.
JTL continues to monitor external opportunities for partnership and acquisition as long as these support the JTL objectives, ethos and the overall business strategy.
The JTL strategic objective of improving financial management and performance continues to support all our development plans and continued improvement.
23
**JTL (A company limited by guarantee)**
**Trustees’ Annual Report (Including Strategic Report)**
**Year Ended 31[st ] July 2022**
## **Going Concern**
The Trustees have assessed the financial impact of Covid-19 on the charity to date, along with latest financial results and future forecasts and, as a result, have a reasonable expectation that the financial impact of Covid-19 on the charity has now peaked and will reduce year on year going forward, and therefore the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
## **Trustees’ Responsibilities Statement**
Trustees (who are also directors of JTL for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic 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 which give a true and fair view of the state of affairs of the charitable company and the group and of their incoming resources and application of resources, including the income and expenditure of the charitable company and the group for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently.
- observe the methods and principles in the Charities Statement of Recommended Practice (SORP) 2019 (FRS102).
- make judgements and estimates that are reasonable and prudent.
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company and the group will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and the group and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation
24
**JTL (A company limited by guarantee)**
## **Trustees’ Annual Report (Including Strategic Report)**
## **Year Ended 31[st ] July 2022**
in other jurisdictions.
## **Disclosure of information to the auditors**
We, the Directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:
- there is no relevant audit information of which the company's auditors are unaware; and
- we have taken all the steps that we ought to have taken as Directors in order to make ourselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
In approving the Trustees' Annual Report, we also approve the Strategic Report included therein, in our capacity as company Directors.
## **Auditors**
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
Signed on behalf of the Board of Trustees
Sir John Low, Chair of the Trustees
Date:
25
JTL
IA company limited by guarantee)
MENZIES
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JTL
Opinion
We have audited the financial statements of JTL (the 'parent charitable company'l and its subsidiaries Ilhe 'group'l for the
year ended 31 July 2022 which cornprise the Consolidated statement of financial activities, the Consolidated balan sheet,
the Company balance sheet. the Consolidated slalernent of cash flows and the related notes, including a summ8ry of
significant 8cwunling policies. The financial reporting fi8mework that h85 been applied in their preparation is applicable law
and United Kingdom Accounting St8ndard5. including Fin8nci81 Reporting Standaid 102 'The Fin8nCI81 Reporting St8ndaid
applicable In the UK and Republic of Ireland. (United Kingdom Generally Accepted Accounting Practice).
In OLJr opinion the finanual 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 July 2022
and of the Group's incoming resources and application of resources, induding its income and expenditure for the
year then ended.,
have been properfy prepared in accordance with United Kingdorn 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 IUKI IISAS IUWI and 8pplicable law. Our
responsibilities undei those stsnd8rds are fvrther described in the Auditors, iesponsibililies for the audit of the fin8nci81
statements Section of our report. We are Independent of the Group in accordance with the ethical reqLJiiernents that ale
relevant to our aLJdit of the financial statement5 in the United Kingdom, including the Financial Reporting Council's Ethical
Standard, and we have fulfilled our other ethical responsibilrties 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.
Concluslons relatlng to golng 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 al least twelve months from when the financial staterllents are authorised for
Issue.
Our responsibilities 8nd the responsibilities of the Trustees with respect lo going concern are described in the relevant
sections of thi5 report.
Other information
The other information comprises the infomation included in the Annual report other than the financial statements and our
Auditors, report thereon. The Trustees are responsible for the other information contsined 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 infomation is materially inconsistent with the financial statements
or our knowledge obtained in the course of the audit, or otherwise appears lo be materially misslaled. If we identify such
material inconsistencies or apparent material misstaternents, we are required to deterrnine whether this gives rise to a
material rllisstatement in the fin8ncial st8tements themselves. If, b8sed on the work we have perfomied, we condude that
there is a material rnisstslemenl of this other infonnation. we are required to report th8t fact.
We have nothing lo report in this regard.
Page 26
JTL
IA company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JTL{CONTINUEDI
Oplnlon on other matters prescrlbed by the Companles Act 2006
In our opinion, based on the work undertaken in the course of the audit..
the infomation given in the Trustees, report including the Strategic report for the finanaal year for which the financial
statements are prepared is consistent with the financial statements.
the Trustees, report and the Strategic report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knoedge and understanding of the charitable cornpany and its environrnent obtained in the course of the
audit, we have not identified m8terial misst8tements in the Trustees, report including the Strategic report.
We have nothing lo report in respect of the following matters in rel8tion lo which Companies Act 2006 requires us lo report
lo 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 leiVed frorn branches not visited by LJS., 01
the parent charitable company finanual statements are not in agreement with the accounting records and retums", or
certain disclosures of Trustees, remuneration speafied by law are not made., or
we have not received all the inforrnation 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
cornpany for the purposes of company lawl are responsible for the preparation of the financial statements and for being
satisfied th8t they give a true and fair view. and for such internal control as the Trustees determine is lle388ry to enable
the preparation of fin8nci81 stslements that are free from material misststement. whether due to fraud or error.
In prep8ring the financi81 ststemenls, the Trustees are iesponsible for assessing the Group's and the p8ienl th8rit8ble
cornpany's abilrty to continue as a going concern, disclosing, as applicable, Tnatters related to going concem and using the
going concern basis ol aceounb.ng unle55 the Trustees either intend to liquidate the Group 01 the parent charitable cotnpany
or to cease operations, or have no realistic alternative but to do so.
Page 27
JTL
IA company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JTL{CONTINUEDI
Audltors, responslbllltles for the audlt of the flnanclal 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 ol assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will
always detect a material rnisstatement when it exists. Misstaternents can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influenTr the economic decisions of users
taken on the basis of these fin8nci81 statements.
Irregularities. induding fraud. are instances of non-complian with laws 8nd regulations. We design procedures IN line with
our responsibilities. outlined above. lo detect material misst8tements In respect of irregul8ritie5. including fraud. The extent
to which our procedures are capable of detecting irregu18ritie5, induding fraud 15 detailed below..
The charitable company is subject to laws and regulations that directly affect the financial statements including financial
reporting legislation. We determined that the following laws and regulations were most significant including the Companies
Act 2006, Charities Act 2011, Employment and Health and Safety legislation, GDPR and the UK Code of Fundraising
Practice. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related
finanaal statement items.
We understood how the charitable company is complying with those legal and regulatory frarneworks by. making inquiries to
management, those responsible for legal and compliance procedures and the company secretary. We corrobor8ted our
inquiries through our review of board rninules.
The engageTnent partner asse55ed whether the engagernent teatn collectively had the appropriate competence and
capabilities to identify or recogni5e non-CQTnpliance with laws and regulations. The assessment did not identify any issues in
this area.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might
occur. We considered the opportunities and incentives that may exist within the organisation for fraud and identified the
greatest potential for fraud in the following areas.. fictitious employees, apprentices that don't exist. fictious suppliers, the
posting of unusual journals and complex transactions and the use of managernent override of controls to manipulate
results. or to cause the Cornpany to enter into transactions not in its best interests.
Audit procedures performed by the engagement le8m included..
identifying and assessing the design and effectiveness of controls man8gernent ha5 in place to prevent and detect fr8ud..
understanding how those charged with governance considered and addressed th8 potential for override of controls or
other Inappropriate influence over the finanaal reporting proSs.,
challenging assLJmptions and judgements made by management in its significant accounts estimates,"
identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading
to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the rnore that
compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we
will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring
due lo fraud rather than error, as fr8ud involves intentional coNce8lrnent. forgery. collusion. omission or misrepresentation.
A further description of our responsibilities for the audit of the financi81 stslemenls is located on the Financial Reporting
Council's website *.' www.frc.or
.ukl8uditorsres
. This description forms part of our Auditors, report.
Page 28
JTL
IA company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JTL{CONTINUEDI
Use of our report
This report is made solely to the charitable company's members, as a body, in accordan with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit worf( 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 cornpany and its members,
as a body, for our audit work, for this report, or for the opinions we have formed.
Janice Matthews FCA (Senior statutory auditor)
for and on beha of
Menzies LLP
Chartered Accounlanls
Statutory Auditor
Centrum House
38 Station Road
Egham
Surrey
TW20 9LF
D*e.' 24 April 2023
Page 29
JTL
IA Company limited by guarantee)
JTL
Trainin8 People
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES IINCORPORATING INCOME AND
EXPENDITURE ACCOUNT}
FOR THE YEAR ENDED 31 JULY 2022
Unrestrlcted
funds
2022
Total
funds
2022
Total
funds
2021
Note
Income from..
Don8tions and legacies
Charitable activities
Other trading activities
Investments
2,787
31,822,449
8,427,152
3S9,253
2,787
31,822,449
8,427,152
359,253
7 10,203
27. 785,956
7,647, 157
417,846
Total income
40,611,641
40,611,641
35.961,162
Expenditure on..
Raising funds
Charitable activities
7,945,163
35.673,285
7,945,163
35.673,285
7, 174,9T4
32,526, 135
Total expenditure
43,618,448
43,618,448
40,301, 109
Net expenditure before net Ilossesllgains on investments
Net Ilossesllgains on investments
13,006,807)
1472,2721
13,006,807)
1472,2721
{4,339,947)
7,Q32,647
Net lexpenditureVin¢ome before taxation
Taxation
13,479,079)
41,891
13,479,079)
41,891
2.692, 700
(464,030)
Net movement In funds
13.437,1881
13.437,1881
2,228,670
Reconciliation of fundB=
Tot81 funds brought forward
Net movement in funds
46,002,012
13,437,188)
46,002,012
13,437,188)
43. 773,342
2,228,670
Total funds earnèd forward
42.564,824
42.564,824
46,002,012
The Consolidated statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 34 to 54 fom part of these financial statements.
Page 30
JTL
IA company limited by guarantee)
REGISTERED NUMBER..03958541
JTL
Trainin8 People
CONSOLIDATED BALANCE SHEET
AS AT 31 JULY 2022
2022
2021
Note
Fixad assats
Intangible assets
Tangible assets
Investments
16
44,807
9,331,185
33,768,807
37, 146
7,Q77,827
37,Q08,395
17
18
43.144,799
44, 723,362
Current aBset8
Debtors
Cash at bank and in hand
19
5,197,694
3,754,488
6,91Q,267
3, 775, 751
8,952.182
10,685,998
Creditors.. amounts falling due within one year
20
19,287,991)
(8,578, 737)
Net current Ilabllltles l assets
1335,8091
2, 107,267
Total assets18ss eurr•nt liabilities
42.808,990
46,230,623
21
1244,1661
(228,617)
Total net assets
42,564,824
46,Q02,012
Charity funds
Unrestricted funds
22
42.564,824
46,Q02,012
Total fvnd8
42.564,824
46.(2,012
The Trustees acknowledge their responsibilities for complying with the requirements ol the Act wth 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..
JL
Sir John Low
Chair of the Truslees
D*e'.
t4 4pYa 20L3
The notes on pages 34 to 54 form part of these financial slalements.
Page 31
JTL
IA company limited by guarantee)
REGISTERED NUMBER..03958541
JTL
Trainin8 People
COMPANY BALANCE SHEET
AS AT 31 JULY 2022
2022
2021
Note
Fixad assats
Tangible assets
Investments
17
9,069,649
33,900,810
6.909, 152
37, 140,398
18
42,970,459
44,049,550
Currnnt assèts
Debtors
Cash at bank and in hand
19
7,532,260
3,173,898
8,244,021
3,397,469
10,706.158
11,641,490
Creditors.. amounts f811ing due within one year
20
18,109,6911
(6,862.867}
Net current assets
2,596,467
4, 778,623
Total assets less current Ilabllltles
45.566,926
48,828, IT3
1244,1661
(228,611)
Total net assets
45,322,760
48,599,562
Charity funds
Unrestricted funds
22
45,322,760
48,599,562
Total funds
45.322,760
48,599,562
The Company's net movement in funds for the year was £13,276,802) (2021- £2, 737,9711.
The Trustees acknowledge their responsibilities for complying with the requirements of the Aci with respect to accounting
records and preparation of financial statements.
The financial staternents were approved and authorised for issue by the Trustees and signed on their behalf by..
Sir John Low
Chair of the Trustees
Date".
The notes on pages 34 to 54 form part of these financial statements.
Page 32
JTL
IA Company limited by guarantee)
JTL
Trainin8 People
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2022
2022
2021
Note
Cash flows from oparating aetivitiès
Net cash used in operating activities
25
289.017
(3,056,960)
Cash flows from investing activities
Dnfidends, interest5 and rent5 from investment5
Purchase of intangible assets
Purchase of tangible fixed assets
Payments to aqcuire investrnents
Receipts from sales of investments
Movement in cash held by investment managers
359.253
417,846
120.0001
(38,315)
13,414,4901 {3, 120,788)
16,203,840) (2,377,795)
9,182,001
6,818, 131
1213.1841
1,272,488
Net cash (used inllprovided by investing activities
1310.2601
2,971,567
Cash flows from flnanclng actlvltles
Net cash provided by financing activitie
Change in ¢08h and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
121,2431
3,775,731
185,3931
5,861, 124
Cash and eash •quivalènts at thè ènd of th• y•ar
26
3,754.488
3, 775, 737
The notes on pages 34 to 54 fom part of these financial statements
Page 33
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
General Informatlon
JTL is a charitable company limited by guarantee and is incorporated in England and Wales. In the event ol the
charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.
The address of the registered office is given in the charity information on page 3 of these financial staternents.
The nature of the charity's operations and principal activities are delivering Advanced Apprenticeships in
Electrotechnical. Plurnbing. Engineering and Healing and Venlilaling.
A¢counting poli¢ie¥
2.1 Basls of preparatlon of financlal statements
The financial statements have been prepared in accordance with the Charities SORP IFRS 1021- 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
IFRS 1021 (effective 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of
Ireland IFRS 1021 and the Cornp8nies Act 2006.
JTL meets the definition of a public benefit enlily under FRS 102. Assets and liabilities are initially recognised
81 historical wsl 01 118ns8Ction value unless otherwise ststed in the relevant accounting policy.
The significant 8ccounting policies applied in the preparation of these financial statements ale set out below.
These poliues have been consistently applied to all years presented unless otherwise stated.
2.2 Basis of eonsolidation
The financial statements consolidate the accounts of JTL and its wholly owned subsidiaries undertakings,
CompEx Certification Limited, Develop Training Group Limited and Develop Training Limited.
The charity has taken advantage of the exemption contained within Section 408 of the Companies Act 2006 not
to present its own income and expenditure account.
The net movement IN funds deal with in the income and expenditure account of the charity w8s deficit
£3,276.80212021. £2,737.9711.
2.3 Going Concern
Th8 Trustees have assessed the use of going conrn and have considered po55ible 8vent5 01 conditions that
might cast 51gnificant doubt on the ability of the Chaiity to continue as a going concern including the ongoing
and reducing negative financial impact of Covid-19. The Trustees have made this assessment for a period of at
least one year from the date ol the approval ol these financial statements. The Trustees have conduded that
there is a reasonable expectation that the Charity has adequate resources to continue in operational existence
for the foreseeable future. The Charity therefore continues to adopt the going concern basis in preparing these
financial statements.
2.4 Fund accounting
Unrestricted funds are available for use al the discretion of the Trustees in furtheran of the general objectives
of the charity. All funds received during the ye8r were unrestricted.
Page 34
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
Accountlng polSeles Icontlnuedl
2.5 Income
All incoming resources are included in the Statement of Financial Activities ISOFAI when the charity is legally
entitled to the income after any performance conditions have been met, the amount can be measured reliably
and it is probable that the income will be received.
Income from government and other grants are recognised at fair value when the charity has eNlillement after
any perforrnanoe conditions have been mel. it is probable that the incorne will be reoeived, and the arnount can
be measured reliably. If entrtlement Is not met. then these arnoLJnts 8re deferied.
Investment Income is eamed through holding assets for investment purposes such as shares. It inclLJdes
dividends and interest. Interest income is recognised using the effective interest method and dividend income
is recognised as the charity's right to receive payment is established.
Other income includes gains on disposals of tangible fixed assets, recognised upon completion of the sale.
2.6 Expenditure
All expenditure is accounted for on an accruals basis and has been dassified under headings that aggregate
all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to
make payments to third parties. il is probable that the settlement will be required. and the amount of the
obligation c3n be measured reliably. It 1$ categorised under the following he8dings.'
Expenditure on charitable activrtie5 comprises costs which directly relate to education and training activrties
as well as an allocation of 5UPPOrt costs, see note12.71.
Costs of raising funds, which indudes".
Trading expenditure consists of expenditure relating to the operation of the trading subsidiaries
CompEx Certification Limited and Develop Training Limited.
Investment management expenses which consist of amounts charged by Investment Managers for
managing the charrty's investments.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
Expenditure on raising funds includes 811 expenditure incurred by the Group to raise funds for ils charitable
purposes 8nd includes wsts of all fundraising 8¢tivilies events and non-charitable 118ding.
Expenditure on charitable activrties is incurred on directly Ljndertaking the activrties which furthei the GIOLJP'S
objectives, as well as any associated support COSts.
2.7 Support eosts allocation
Support costs are those that assist the work of the charity but do not directly represent charitable activities and
include office costs, governance costs and administrative payroll costs. They are incurred directly in support of
expenditure on the objects of the charity and include project management carried out at headquarters. Where
support costs cannot be directly attributed to particular headings, they have been allocated to cost ol raising
funds and expenditure on charitable activities on a basis consistent with use of the resources.
Page 35
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
Accountlng polSeles Icontlnuedl
2.8 Intanglble assets and amortlsatlon
Intangible fixed assets are stated at cost lor deemed costl less accumulated depreciation. Cost indudes costs
directly attributable to making the asset capable of operating as intended.
Assets costing less than £1,000 individually are not capitalised and are expended within the year.
Amortisalion is provided on 811 intangible fixed assets, al rates calculated lo write off the cost. less eslirnaled
residual value. of each asset on a systematic basis over ils expected useful life. During the year the
8mortisalion 18le applied was..
Software
25 Straight line
2.9 Tangible fixèd as$•ts and d•prèeiation
Tangible fixed assets are stated at cost lor deemed costl less accumulated depreaation. Cost includes costs
directly attributable to making the asset capable of operating as intended.
Assets costing less than £1,000 individually are not capitalised and are expended within the year.
Depreaation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estirnated
residual value. of each asset on a systematic basis over its expected useful life. During the year the
depreciation rates were..
Freehold propety
Short-lerrn leasehold property
Motor vehicles
Fixtures and fittings
Cornputer equiptnent
Software I IT consultancy
4/¢ Straight line
25DJ¢ Straight line
33DJo Straight line
25DJo Straight line
25Q/o Straight line
25Qk straight line
No depreaation is provided for on Freehold Land
2.10 Investments
Investments are recognised initially at fair value, which at year end is normally the transaction price excluding
transaction costs. Subsequently, they are continuously measured at a rnark to market at fair value with
changes recognised in 'net gains or losses on investments, in the consolidated statement of financial activities
if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are
measured al cost less irnpaimenl.
Inveslrnenls in subsidi8ries are Tneasuied 81 cost less itnpaiirnenl.
2.11 Impairment
Assets not measured at fair value ale ieviewed for any indication that the asset may be impaiied at each
balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash
generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its
recoverable amount, an impairment loss is recognised in the SOFA unless the asset is carried at a revalued
amount where the impairment loss is a revaluation decrease.
2.12 Provisions
Provisions are recognised when the charity has an obligation al the balance sheet date as a result ol a past
event, it is probable that an ouffiow of economic benefits will be required in settlement and the amount can be
reliably estimated.
Page 36
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
Accountlng polSeles Icontlnuedl
2.13 Leases
Rentals payable under operating leases are charged to the Consolidted statement of finanaal activities on a
straight-line basis over the period of the lease.
2.14 Employee benefits
When ernployees have rendered service to the charity, short-lerm ernployee benefits to which the employees
8re entitled are recognised at the undiscounted 8mounl expected to be paid in exchange for that servi. The
charity operates a defined contribution plan for the benefit of ils employees. Contributions are expensed as
they become p8yable.
2.15 Tax
The charity 15 considered to pa5S the tests Set out In Paragraph 1 Schedule 6 Finance Act 2010 and therefore rt
meets the definition of a charitable company for UK corporation tax purptsses. As such, surpluses and gains are
exempt from Corporation Tax providing they are applied for charitable purposes. The trading subsidiary is
subject to Corporation Tax, however, has committed to donate its profit to the parent company in the form of
Gift Aid within 9 months of the year end such that no tax charge arose in the year. This donation is not accrued
at the year end as it does not represent a legal or constructive obligation.
2.16 Financial instruments
The charity holds basic Financial Instrurnents. The financial assets and financial liabilities of the Charity are as
follows..
Financial 8ssets' Trade and other debtors and 8ccrued incorne ale b85ic fin8nCI81 instiutnent5 and are debt
insttument5 measured at atnort15ed cost as detailed in note 19. Piepayrnents are not financial instruments.
Cash at bank- is dassified as a basie financial instrument and is measured at face value.
All other investments are dassified as basic financial instruments and held at their fair value.
Financial Liabilities.. Trade creditors, accruals and other creditors wll be classified as financial instruments and
are measured at arnortised cost as detailed in note 20. Basic taxation and soaal security are not induded in
the financial instrument's disclosure. Deferred income is not deemed to be a financial liability, as the cash
settlement has already taken place and there is an obligation to deliver charitable services rather than cash or
8nolher financial inslrumenl.
2.17 Comparative reallocation
For the ye8r ended 2021 some of the expendituie cost5 have been recl8ssified between cost of sales and
administrative expense5 to better ieflect the nature of these costs. There was no effect on the1055 for the year.
Critical aceounting èstimatas and arèas of judg•m•nt
Judgements (apart from those involving estimates) have been made in the process ol applying the following
accounting poliaes that have had a signrficant effect on amounts recognised in the finanaal statements.,
Depreciation rates lor tangible fixed assets
Provision for bad and doubtful debts
Critical accounting estimates and assumptions..
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and
assumptions will. by definition, seldom equal the related actu81 results. The estimates and assurnplions that have a
significant risk of causing 8 material adjustment to the carrying 8mounls of assets and liabilities within the next
rin8nci81 ye81 are discussed below.
Page 37
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
Income from donations and legacies
Unrestricted
funds
2022
Total
funds
2022
Total
funds
2021
Fuilough gTant incorne
2.787
2.787
110,203
Total 2021
110,203
17Q,203
Income from eharitablè aetiviti•s
Unrestrlcted
funds
2022
Total
funds
2022
Total
funds
2021
ESFA and Welsh Assembly income receivable
Other income receivable
29,748,183
2,074,266
29,748,183
2,074.266
25,Q46,226
2, 139, 730
31,822.449
31,822,449
27. 785,956
Total 2021
27, 785,956
27, 785,956
Other incorne receiv8ble of £2.074.266 12021 £2,739.7301 comprises of income frorn various sources including
ernployei contributions, commerci81 couise5. roorn hiie, rental Income, rniscellaneou5 incorne 8nd ioy8ltie5.
Page 38
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
Income from other trading activities
Income from non charitable trading activities
Unrestricted
funds
2022
Total
funds
2022
Total
funds
2021
Trading incorne in subsidiaries
8,427.152
8,427,152
7.647, 157
Total 2021
7,647, 157
7,647,757
Inve¥tment income
Unrestricted
funds
2022
Total
funds
2022
Total
funds
2021
Dividends and interest from listed investments
359,253
359.253
417,846
rotal 2021
417,846
47 7.846
Expendlture on ralslng funds
Fundraising trading &xpèns&s
Unrestrlcted
funds
2022
Total
funds
2022
Total
funds
2Q21
Direct trading expenses
Direct trading expenses- wages and salaries
Support costs of trading
2,852,163
600,858
4,367,[6
2,852,163
600,858
4,367.066
1,517,234
1,034,492
5,092,5T9
7,820.087
7,820,087
7,644,305
Total 2021
7,644,305
7,644.305
Page 39
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
Investment management costs
Unrestricted
funds
2022
Total
funds
2022
Total
funds
2021
Investment management fees
125.076
125,076
130,669
Total 2021
130,669
13Q,669
10.
Anal18 of grants
Grants to
Individuals
2022
Total
funds
2022
Tot81
funds
2021
Grants, Education and training
1,826,600
1,826.600
1, 133,400
rotal 2021
1. 733,400
1, 733.400
11.
Analysls of expendlture on charltable actlvltles
Summary byfund type
Unrestricted
funds
2022
Total
2022
Total
2Q21
Education and training
35,673.285
35,673,285
32.526, 135
Total 2021
32,526, 135
32,526, 155
Page 40
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
12.
Analysis of expenditure by activities
Activities
undertaken
directly
2022
Grant
funding of
activities
2022
Support
costs
2022
Totsl
funds
2022
Total
funds
2021
Education and training
27,066.301
1.826,600
6,780.384
35,673,285
32.526,135
Total 2021
25,428,524
1, 733,400
5,364,211
32,526, 155
13.
Auditor¥' remuneration
2022
2021
Fees payable to the Charity's auditor for the audit of the Company's annual
accounts
29,750
25,000
Fees payable to the Company's auditor in respect of..
The aLJditing of accounts of subsidiaries of the Charity
Accountancy and tax services
14.375
6.050
12,500
5,500
14.
Staff costs
Group
2022
Grtrup
2021
Company
2022
Company
2021
Wages and salaries
Soo815ecurity costs
Contribution to defined contribution pension
schemes
16,005.959
1,825,067
16.431,359
1.628,692
13,043.722
1,498,417
12,407,111
1.334,710
1,847,430
1,886,837
1,621,933
1,629,926
19,678,456
19,946,882
16,164,072
15,371, 747
During the year termination payments of £Nil12021'.£192,5031 were paid.
Page 41
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
14.
Staff costs Icontlnuedl
The average number of persons employed by the Company during the year was as follows..
Group
2022
No.
Grtrup
2021
No.
Company
2022
No.
Company
2021
No.
Directors
Operations
Support
300
146
309
163
270
90
273
116
455
480
366
395
The average headcount expressed as full-time equivalents was..
Group
2022
No.
Group
2021
No.
Company
2022
No.
Company
2021
No.
Directors
Operstions
Support
296
299
266
264
144
155
88
112
449
462
360
382
The number of employees whose employee benefits lexduding employer pension costs) exeded £60,000 was..
Group
2022
No.
Group
2Q21
No.
In the band £60,001- £70,000
In the band £70,001 - £80,000
In th8 band £80.001 Ego,000
In the band £90.001 - £100,000
In the band £100,001- £110,000
In the band £120,001- £130,000
In the band £200,001 £210,000
In the band £250,001 - £260,000
15.
Trustees, and Key Management Personnel Remuneratlon and Expenses
During the year, no Trustees reiVed any remuneration or other benefits12027 - £NIL).
Page 42
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
15.
Trustees, and Key Management Personnel Remuneratlon and Expenses Icontlnuedl
During the period, four trustees were reimbursed £53712021.. £6781 for expenses relating to travel costs.
The Charity considers its key management personnel comprise ol..
The Trustees
Chief Executive Officer
Chief Operating Officer
Director of Le8rning & Innov81ion
Director of Policy & External Relations
Human Resouice5 Directoi
Interim Director of Finance and Resources
National Delivery Director
As noted above no trustees were remunerated during the year. The total amount of employee benefits received by
key management personnel Isalary, Employer Nl, Employers Pension, Benefit in Kind etc.) was £1,097,29412021'.
£929,520).
16.
Intsngible assets
Group
Computer
software
Goodwill
Total
At 1 August 2021
Additions
38,315
20,000
24,001
62,316
20,000
Al 31 July 2022
58.315
24,001
82,316
Amortisation
At 1 August 2021
Charge for the year
1.169
12,339
24,001
25,170
12,339
At 31 July 2022
13,508
24,001
37,S09
Net book value
Al 31 July 2022
44,807
44,807
At 31 July 2021
31, 146
37, 146
Page 43
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
16.
Intanglble assets leontlnuedl
Company
Goodwill
Cost
At 1 August 2021
24,001
At 31 July 2022
24,001
Amortlsatlon
At 1 August 2021
24,001
At 31 July 2022
24,001
Net book value
At 31 July 2022
At 37 July 2021
Page 44
000
P4
J O
J v
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
17.
Tanglble fSxed assets leontlnuedl
Induded in the net book value of property displayed above are the following amounts ascribable to land..
Group
2022
Grtrup
2021
Freehold land
2,412.696
6,768.363
631,875
4.957,447
Freehold buildings
9,181,059
5.589,322
Note.. A leasehold ol bLJilding was acquired in Cailisle with a life of 53 years which is being depreciated over 25
years.
18.
Fixad assèt invèstmènts
Listed
investment5
Group
Cost or valuation
At 1 August 2021
Additions
Disposals
Revaluations
Foreign exchange movement
37.008,395
6.203,840
19,182,001)
1474,6111
213,184
Al 31 July 2022
33.768,807
Net book value
At 31 July 2022
33.768,807
At 37 July 2021
37.Q08,395
Page 47
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
18.
Flxed asset Investments IcontSnuedl
Investments
in subsidiary
cornpanies
Listed
investsnents
Total
Company
Cost or valuation
At 1 August 2021
Additions
132.003
37,008,395
6,203,840
19,182,001)
1474,6111
213,184
37.140,398
6.203,840
19.182,0011
1474,6111
213,184
Dispos815
Revaluations
Foreign exchange movement
At 31 July 2022
132.003
33,768,807
33.900,810
Net book value
At 31 July 2022
132.003
33,768,807
33.900,810
Al 31 July 2021
132.003
37.008,395
37. 140,398
Principal subsidiariès
The following were subsidiary undertakings of the Company".
Names
Company
number
Registered office or principal Class of
place of business
shares
Holding
Develop Training Group Limited
08299573
Derby Training Cent, Ascot Drive, Ordinary
Derby, DE24 8GW
Derby Training Centre, Ascot Drive, Ordinary
Derby, DE24 8GW
Stafford House, 120-122 High
Street, Orpington, Kent, BR6 OJS
100¢/0
Develop Training Limited
OS115331
100°
CompEx Certification Limited
02336110
Ordinary
100°/0
The financial resutts of the subsidiaries for the year were..
Names
Income
Expenditure
ProfiVILoss1
for the year
Net assets
Develop Training Limited
CompEx Certrfication Limited
6,857,262
1,574,170
17,269,510)
11,183,281)
1370,3571
390,889
12,988,502)
362,569
Subsequent to the year end, Develop Training Group Limited was dissolved on 13 December 2022.
Page 48
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
18.
Flxed asset Investments IcontSnuedl
Group and Company
2022
2021
Invèstments at fair value eomprise..
Equities
Securities
26,975,356
5,392.399
1,401.052
30,330,801
6,066, 122
611,473
Cash within investment portfolio
33,768,807
37.Q08,396
The fair value of listed inve5trnents is determined by reference to the bid Isalel price at close of business on the
date of the valuation or fair value if the market value is unavailable.
19.
Debtors
Group
2022
Gft)up
2021
Company
2022
Company
2021
Due within one year
Trade debtors
3,987,985
5,683,967
3,052,558
3,818,230
112,799
548.673
4,588,568
2, 744,927
191,319
119,207
Amounts owed by group undertakings
Other debtors
143,448
1,066.261
207,071
1,019,229
Prepayments and acuued income
5,197.694
6.910,267
7,532.260
8.244,027
As at the year end, JTL was owed £222,03912021'. 2136,5031 from CompEx Certification Limited and £3,596,191
12021.. £2,808,424) from Develop Training Limited. £53,889 interest was charged lor the year.
Page 49
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
20.
Credltors.. Amounts fallSng due wlthln one year
Group
2022
Gft)up
2021
Company
2022
Company
2021
Trade Ixeditors
Other taxation and social security
Other creditors
Accruals and deferred income
3,095.833
717,136
757,540
4,717,482
2.832,514
792,639
1,213,566
5, 740,018
2,921.004
400,045
487,899
4,300,743
2.306,034
469,043
554,488
5,533,302
9,287.991
8,578, 737
8,109.691
6,862,867
Deferred income relates to the license and apprenticeship fees being recognised over the period that they relate to.
Group
2022
Deferred Income
Deferied income at 1 August 2021
Resources deferied during the year
Amounts released from previous periods
248,495
342,538
1264,4371
326,S96
21.
Provisions
Group and Company
Dilapidation¥
At 1 August 2021
Additions
228,611
15,555
244,166
Al 31 July 2022
Page 50
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
22.
Statement of funds
Statement of funds- current year
Balance at 1
August 2021
Gainsl Balance at 31
ILossesl
July 2022
Income
Expenditure
Taxation
Unrestrietèd
funds
General Funds
46,002,012
40,611,641
143,618,4481
41,891
1472,2721
42,564,824
ststement of funds- prior year
8alanc8 8t
1 August 2020
G8AnsJ
B818nc8 at
(Losses) 31 July 2021
Inconje
Expenditure
T8xatNon
Unrestricted
funds
General Funds
43, 773,342
35,961, 162 (40,301, 109)
1464,030)
7,032,647
46,Q02,072
23.
Summary offunds
Summary of funds- current year
Balance at 1
August 2021
Gainsl Balance at 31
ILos¥esl
July 2022
Income
Expenditure
Taxation
General funds
46,002,012
40,611,641
143,618,448)
41,891
1472,2721 42,564,824
Summary of funds- prior year
Balance at
1 August 2020
Gains/
Balance at
(Losses) 31 July 2Q21
Income
Expenditu
raxation
General funds
43, 773,342
35,961, 162 (40,301, 109)
(464,030)
7,032,647
46,002,012
Page 51
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
24.
Analysis of net assets bets¥een funds
Analysis of net assets betsyeen funds . current year
Unrestricted
funds
2022
Total
funds
2022
T8ngible fixed assets
Int8ngible fixed assets
Fixed asset investments
9.331,185
44,807
33,768,807
8,952,182
19,287,991)
1244,1661
9,331,185
44,807
33,768,807
8,952,182
19.287,9911
1244,1661
Current assets
Creditors due within one year
Piovisions for Iiabilrties and charges
Total
42,564,824
42,564,824
Anal18 of net assets between funds - prior year
Total
funds
2021
fuffKIs
2021
Tangible fixed assets
Intangible fixed assets
Fixed asset investments
Current assets
T,071,821
7,077,821
37, 146
37, 146
37,008.395
37.008,395
10,685.998
10.685,998
(8,578, 737) (8,578,737)
(228,611)
(228,611)
Creditors due within one year
Provisions for liabilities and charges
Total
46,002.012
46.Q02,012
Page 52
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
25.
Reconclllatlon of net movement In funds to net cash flow from operatlng actlvltles
Group
2022
Gft)up
2021
Net incornelexpenditLJre foi the year las per Statement of Finanaal Activib"e51
13,437.1881
2,228,6TO
Adjustments for..
Depreciation charges
Amortisation charges
Gains on investments
1,161.125
12,339
474.610
1359.2531
1,712.573
709,256
141,8911
15,SSS
41.891
1, 187,837
1, 169
(1,052,647)
1417,846)
(726,913)
1, 179,218
464,030
59,528
Dividends, intere5t5 and rent5 from inve5ttllents
Iln¢re8selldecre8se in debtors
Increase in creditors
Tax charge
Increase in provisions
Tax received
Net ¢a$h provided byllu¥ed inl operating a¢tivities
289.017
13.056,960)
26.
Analysls of cash and cash equlvalents
Group
2022
Grnup
2021
Cash in hand
3,754.488
3, 775, 731
Totsl cash and cash equivalents
3,754,488
3. 775,737
27.
Analysis of ehanges in net debt
At 1 August
2021
At 31 July
2022
Cash flows
Cash at bank 8nd in hand
3,775,731
121,2431
3,754,488
3,775,731
121,2431
3,754,488
Page 53
JTL
IA company limited by guarantee)
JTL
Training People
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
28.
Operatlng lease commltments
At 31 July 2022 the Group and the Company had commitments to make future minimum lease payments under
non