OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-07-31-accounts

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL

(A company limited by guarantee) Group Consolidated Financial Statements

Year ended 31[st ] July 2023

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

----- Start of picture text -----
||||| |---|---|---|---| |Group|Consolidated|Financial|Statements| |Year Ended 31|[st ]|July 2023|

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

----- Start of picture text -----
||| |---|---| |Contents|Page No| |Charity Reference and Administrative Details|3| |Trustees’ Annual Report (Including Directors’ Report and Strategic Report)|4| |Independent Auditor’s Report|19| |Consolidated Statement of Financial Activities|23| |Consolidated Balance Sheet|24| |Charity Balance Sheet|25| |Consolidated Statement of Cash Flows|26| |Notes to the Financial Statements|27|

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

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL

(A company limited by guarantee)

Group Consolidated Financial Statements

Year Ended 31[st ] July 2023

Charity registration number 01080254 Company registration number 03958541 Trustees S Bratt (Interim Chair) (resigned 01.11.22) Sir John Low (Chair) (appointed 01.11.22) J Allott R Clarke A Eldred E Staley C Fenton (resigned 08.11.22) A Green S Fraser-Whyte (appointed 29.06.23) G Hall (resigned 13.02.23) J Lelliott OBE J Poulter (appointed 13.10.22) T Shelley Chief Executive P McGuire (Interim) (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 Professional Advisers Auditors Solicitors Menzies LLP Stone King LLP Magna House Boundary House 18-32 London Road 91 Charterhouse Street Staines-Upon-Thames London TW18 4BP EC1M 6HR Bankers Investment Managers Barclays Bank PLC Barclays Wealth Management 1 Churchill Place 1 Churchill Place London London E14 5HP E14 5HP

3

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

Trustees’ Annual Report (Including Strategic Report)

Year Ended 31[st] July 2023

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) st for the year ended 31 July 2023.

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

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. To be the training organisation of choice to the building services engineering sector.

The company’s values are:

4

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

Trustees’ Annual Report (Including Strategic Report)

Year Ended 31[st] July 2023

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 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 and regularly review the financial and quality plans. The long-term likely impact of the plans for JTL has been

5

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

Trustees’ Annual Report (Including Strategic Report)

Year Ended 31[st] July 2023

considered as well as the consequences of their decisions.

The interests of the charity’s employees

Trustees review the actions in place to promote staff health and wellbeing. JTL seeks to implement good people management to enable staff to fulfil their potential, with a specific focus on under-represented groups and in line with equality, diversity and safeguarding principles.

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. Significant consultation took place during 2023 with employers, learners and stakeholders to ensure that their expectations and interests are well understood and taken into account in future strategic and business development.

The impact of the charity’s operations on the community and the environment

JTL has published its Corporate and Social Responsibility Statement on its website.

The organisational structure is designed to support a safe environment for all stakeholders that come in contact with JTL, especially employees and learners. JTL continues to invest and improve its safeguarding to ensure that it better protects all those with whom it works.

Maintaining a reputation for high standards of business conduct

JTL strives to achieve its strategic goals; it seeks to demonstrate in all areas the same values that we wish to see in the people we work with and those we aim to influence. Further, JTL’s values and the behaviours, including a commitment to safeguarding, are embedded in its 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, Audit & Risk, Quality & Standards, Health & Safety and Equality, Diversity & Inclusion. The Board has agreed formal Standing Orders for its own operation and formal Terms of Reference for each of the Sub-Committees.

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. Due to significant changes in governance during 2021/22/23, this was deferred until 2023/24 to give time for the new arrangements to bed in. The evaluation is influenced by the Charity Governance Code and the Code of Good Governance for Independent Training Providers published by the

6

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

Trustees’ Annual Report (Including Strategic Report)

Year Ended 31[st] July 2023

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:

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 until a new Chair was recruited. The Chief Operating Officer became interim Chief Executive and a temporary Finance Director was appointed until a new Chief Executive and Finance Director were appointed in 2023. 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.

Employees

st The average monthly full-time equivalent number of employees of JTL for the year ended 31 July 2023 was 388 (2022: 366).

JTL communicates with its staff through a number of channels including regular executive blogs, webinars, newsletters, EMT meetings, other manager and staff meetings, a staff forum and the intranet as well as an annual staff conference.

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,

7

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

Trustees’ Annual Report (Including Strategic Report)

Year Ended 31[st] July 2023

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 65% male and 35% female which reflects JTL’s reliance on a nationwide team of predominantly male occupationally competent assessors.

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. All disabled people who meet the minimum criteria for our vacancies are interviewed. We are supportive of our employees who may become disabled during their employment; they are supported and reasonable adjustments proactively offered as required. Training, career progression and promotion for all disabled persons employed by the company is encouraged. All employees and people working with JTL are expected to treat all people with respect and 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 for 2022/23 were:

The Trustees believe that JTL has made acceptable progress against its charitable objects and its strategic and business plan objectives.

8

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

Trustees’ Annual Report (Including Strategic Report)

Year Ended 31[st] July 2023

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 offered 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 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.

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.

9

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

Trustees’ Annual Report (Including Strategic Report)

Year Ended 31[st] July 2023

Streamlined energy and carbon reporting (SECR)

In accordance with the requirement of the Companies (Directors Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 the Directors would like to disclose the following information for the period ending 31 July 2023

31 July 2023 31 July 2022
tonnes CO2e tonnes CO2e
£ £
Scope 1 (direct emissions) – natural gas Scope 1 (direct emissions) – natural gas Scope 1 (direct emissions) – natural gas 282 204.6
Scope 2 (indirect emissions) – electricity Scope 2 (indirect emissions) – electricity Scope 2 (indirect emissions) – electricity 88 0.2
Scope 3 – electricity transmission/distribution and employee cars Scope 3 – electricity transmission/distribution and employee cars Scope 3 – electricity transmission/distribution and employee cars 244 196.3
Total 614 401.1

The significant increase in CO2e between 2022 and 2023 is due to 2023 being the first year for inclusion of Develop Training Limited.

Methodologies used within the calculation.

The Group has used the actual KWH data from the monthly energy invoices it receives from suppliers and internally stored data on both company owed and employee own vehicles doing business miles and then applied the “Government conversion factors for the Group reporting” to calculate the CO2e content.

Energy efficient actions taken this year.

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.

10

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

Trustees’ Annual Report (Including Strategic Report)

Year Ended 31[st] July 2023

STRATEGIC REPORT

ACHIEVEMENTS AND PERFORMANCE

Management

A three-year Strategic Plan and one-year Business Plan were agreed for 2022/23 which focussed on recovery and stability 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”.

Statistics a

During the year JTL:

©

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.

Quality ®

Quality is a key factor in assessing the effect of our training on both employers and apprentices. The Education Inspection Framework, Self-Assessment Report and Quality Improvement Plan 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

11

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

Trustees’ Annual Report (Including Strategic Report)

Year Ended 31[st] July 2023

disciplines of electrotechnical and plumbing.

In addition, JTL holds BS EN ISO 9001:2008 for quality management systems, the Investors in People (lIP) standard, the Matrix standard Committed 2 Equality’s Gold standard for Equality.

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.

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.

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.

The Consolidated Statement of Financial Activities for the year shows an operating loss for the year of £4,226,283 (2022: Loss £3,006,807) after losses on property revaluation of £2,785,854 (2022: £nil). A revaluation reserve has been created following gains on property of 2,657,472 (2022: £nil). Net movement in funds for the year amounted to a loss of £1,236,429 (2022: £3,437,188) after investment gains of £332,382 (2022: loss of £472,272), gains on property revaluation of £2,657,472 (2022: £nil) and taxation.

This resulted in a net asset position, all held as unrestricted funds as at 31st July 2023, of £41,328,395 (2022: £42,564,624). 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.

12

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

Trustees’ Annual Report (Including Strategic Report)

Year Ended 31[st] July 2023

For the charity alone, total income for the year amounted to £35,491,060 (2022: £32,817,824), with a net reduction in funds of £574,350 (2022: loss of £3,276,802). Total donations to JTL from CompEx Certification Limited and Develop Training Group Limited under the Gift Aid scheme in the year to 31st July 2023 was £362,568 (2022: £183,482). The 2023 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 £9,744,272 (2022: £8,431,432) and costs of £10,043,790 (2022: £8,452,791).

Finance, Audit and Risk Committee (FARC) @

The Finance, Audit and Risk Committee was active throughout 2022/23. 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.

Investments 2

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:

During the year, the overall return of the portfolio was 2.15%. The JTL portfolio has performed comparatively better than the ARC (Asset Risk Consultants) Sterling Steady Growth Charity Index which delivered a return of 0.64% during the same period.

13

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

Trustees’ Annual Report (Including Strategic Report)

Year Ended 31[st] July 2023

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 Solutions Limited, Develop Training Employee Benefit Limited and Develop Training Group Limited have all been dissolved leaving Develop Training Limited.

Develop Training is an accredited commercial course provider of compliance, technical, and safety training for the utilities and construction, defence, healthcare, facilities management, and telecommunication sectors. The training provided has a direct relevance to the building services engineering sector and complements JTL’s apprenticeship output as well as offering CPD and upskilling opportunities to the sector’s workforce.

A plan to turn around Develop Training Limited remains in progress but is taking longer than anticipated at acquisition. Through continued strict management, rigorous governance and oversight from the JTL Board, and efficiencies generated through the use of shared resources with JTL, the turnaround from the current loss-making position to break even and ultimately profit can be achieved

Reserves Policy

The general reserves of the group at 31 July 2023 were £41,328,395 of which £13,149,248 is represented by tangible and intangible fixed assets. Free reserves, defined as excluding such funds attributed to these assets, were £28,179,147.

The current reserves policy requires that unrestricted funds held by the charity should be more than six months (£24,309,511) and less than twelve months (£48,619,022) of the resources expended. After allowing for factors detailed in Charity Commission guidance for

14

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

Trustees’ Annual Report (Including Strategic Report)

Year Ended 31[st] July 2023

best practice, the charity’s reserves are in line with this policy. At this level the charity would be able to continue to honour its commitments to employers and learners until appropriate alternative arrangements can be made.

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:

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. Following an intense period of consultation with employers, learners and stakeholders during the first half of 2023, it has been agreed to refocus JTL’s strategy on

15

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

Trustees’ Annual Report (Including Strategic Report)

Year Ended 31[st] July 2023

three areas: quality of provision, financial sustainability and innovation to meet the changing needs of the industry. As a result, it intends to restructure the business to align resources where needed and reign back on growth during this time to allow a year for transition followed by a year of consolidation before returning to growth, on a small scale initially but then more ambitiously in the fourth and fifth years of its strategic plan. At the same time, it intends to consolidate its provision on its traditional electrical market and review how best to offer plumbing on a sustainable basis. Other more niche areas will be phased out over the period of the plan.

Furthermore, JTL intends to review its delivery strategy and look to establish more of its own centres in target areas to best meet the needs of employers and learners.

JTL remains committed to the implementation of a technology strategy and has set out a digital journey. This includes increased alignment and automation of systems and processes based around the LEAN principles.

As part of this restructuring and refocussing of its business, JTL also plans to improve the Group dynamics in order to increase synergy between the businesses and move towards the greater use of Group services. Develop Training will undergo significant cost cutting to improve its profitability and plans are in place to support closer integration with JTL’s apprenticeship operations to widen their customer base and address the known training and CPD needs of the electrical sector through greater targeting of its commercial course offerings. Governance control across the Group will also ensure that the quality, financial sustainability and innovation aspirations are driven forward across all three businesses.

Underpinning everything will be the focus on the quality of provision and ensuring that the expectations of our customers, learners, funding bodies and the industry are not only met but exceeded. In doing this JTL also wants 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.

JTL continues to monitor external opportunities for partnership and acquisition as long as these support the JTL objectives, ethos and the overall business strategy.

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. Furthermore, the focus on implementing the agreed cost reduction plan will support the planned improvement in financial sustainability and therefore ensure 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.

16

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

Trustees’ Annual Report (Including Strategic Report)

Year Ended 31[st] July 2023

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:

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 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:

17

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL

(A company limited by guarantee)

Trustees’ Annual Report (Including Strategic Report)

Year Ended 31[st] July 2023

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: 27-Mar-2024

18

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JTL

Opinion

We have audited the financial statements of JTL (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 July 2023 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

We have nothing to report in this regard.

Page 19

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JTL (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report including the Strategic report.

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

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Page 20

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JTL (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 more 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 to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Page 21

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JTL (CONTINUED)

Use of our report

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

634F24DE92A4471... Janice Matthews FCA (Senior statutory auditor)

for and on behalf of

Menzies LLP

Chartered Accountants Statutory Auditor Magna House 18-32 London Road Staines-Upon-Thames TW18 4BP

27-Mar-2024 Date:

Page 22

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2023

Unrestricted Total Total
funds funds funds
2023 2023 2022
Note £ £ £
Income from:
Donations and legacies 4 - - 2,787
Charitable activities 5 34,569,376 34,569,376 31,822,449
Other trading activities 6 9,417,059 9,417,059 8,427,152
Investments 7 406,304 406,304 359,253
Total income 44,392,739 44,392,739 40,611,641
Expenditure on:
Raising funds 8,9 9,519,104 9,519,104 7,945,163
Charitable activities 36,314,064 36,314,064 35,673,285
Other expenditure 11 2,785,854 2,785,854 -
Total expenditure 48,619,022 48,619,022 43,618,448
Net expenditure before net gains/(losses) on investments (4,226,283) (4,226,283) (3,006,807)
Net gains/(losses) on investments 332,382 332,382 (472,272)
Net expenditure before taxation (3,893,901) (3,893,901) (3,479,079)
Taxation - - 41,891
Net movement in funds before other recognised gains (3,893,901) (3,893,901) (3,437,188)
Other recognised gains:
Gains on revaluation of fixed assets 22 2,657,472 2,657,472 -
Net movement in funds (1,236,429) (1,236,429) (3,437,188)
Reconciliation of funds:
Total funds brought forward 42,564,824 42,564,824 46,002,012
Net movement in funds (1,236,429) (1,236,429) (3,437,188)
Total funds carried forward 41,328,395 41,328,395 42,564,824

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

The notes on pages 27 to 48 form part of these financial statements.

Page 23

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee) REGISTERED NUMBER: 03958541

CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2023

2023 2022
Note £ £
Fixed assets
Intangible assets 16 139,508 44,807
Tangible assets 17 13,009,740 9,331,185
Investments 18 29,327,107 33,768,807
42,476,355 43,144,799
Current assets
Debtors 19 6,248,166 5,197,694
Cash at bank and in hand 2,493,104 3,754,488
8,741,270 8,952,182
Creditors: amounts falling due within one year 20 (9,422,356) (9,287,991)
Net current liabilities (681,086) (335,809)
Total assets less current liabilities 41,795,269 42,808,990
Provisions for liabilities 21 (466,874) (244,166)
Total net assets 41,328,395 42,564,824
Charity funds
Unrestricted funds 22 41,328,395 42,564,824
Total funds 41,328,395 42,564,824

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

Sir John Low

Chair of the Trustees

Date: 27-Mar-2024

The notes on pages 27 to 48 form part of these financial statements.

Page 24

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee) REGISTERED NUMBER: 03958541

COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 JULY 2023

2023 2022
Note £ £
Fixed assets
Tangible assets 17 12,337,217 9,069,649
Investments 18 29,459,110 33,900,810
41,796,327 42,970,459
Current assets
Debtors 19 9,242,379 7,532,260
Cash at bank and in hand 2,077,853 3,173,898
11,320,232 10,706,158
Creditors: amounts falling due within one year 20 (8,061,322) (8,109,691)
Net current assets 3,258,910 2,596,467
Total assets less current liabilities 45,055,237 45,566,926
Provisions for liabilities (306,827) (244,166)
Total net assets 44,748,410 45,322,760
Charity funds
Unrestricted funds 22 44,748,410 45,322,760
Total funds 44,748,410 45,322,760

The Company's net movement in funds for the year was £ (574,350) (2022 - £(3,276,802)) .

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

Sir John Low Chair of the Trustees

27-Mar-2024 Date:

The notes on pages 27 to 48 form part of these financial statements.

Page 25

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2023

2023 2023 2022 2022
Note £ £
Cash flows from operating activities
Net cash used in operating activities 25 (1,503,945) 289,017
Cash flows from investing activities
Dividends, interests and rents from investments 406,821 359,253
Purchase of intangible assets (109,280) (20,000)
Purchase of tangible fixed assets (4,829,062) (3,414,490)
Payments to aqcuire investments (7,550,898) (6,203,840)
Receipts from sales of investments 12,437,112 9,182,001
Movement in cash held by investment managers (112,132) (213,184)
Net cash provided by/(used in) investing activities 242,561 (310,260)
Cash flows from financing activities
Net cash provided by financing activities - -
Change in cash and cash equivalents in the year (1,261,384) (21,243)
Cash and cash equivalents at the beginning of the year 3,754,488 3,775,731
Cash and cash equivalents at the end of the year 26 2,493,104 3,754,488

The notes on pages 27 to 48 form part of these financial statements

Page 26

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

1. General information

JTL is a charitable company limited by guarantee and is incorporated in England and Wales. In the event of 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 statements.

The nature of the charity's operations and principal activities are delivering Advanced Apprenticeships in Electrotechnical, Plumbing, Engineering and Heating and Ventilating.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

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

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

2.2 Basis of consolidation

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.

2.3 Going concern

The trustees have assessed the use of going concern and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern, including the ongoing and negative financial impact of the financial performance of the subsidiary company Develop Training Limited. This subsidiary is now following a controlled recovery plan with no additional financial support from the charity planned in the next financial year and a forecast providing assurance that loan repayments will commence as the performance of the subsidiary improves.

The trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. The trustees have concluded 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 at the discretion of the Trustees in furtherance of the general objectives of the charity. All funds received during the year were unrestricted.

Page 27

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

2. Accounting policies (continued)

2.5 Income

All incoming resources are included in the Statement of Financial Activities (SoFA) 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 entitlement after any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably. If entitlement is not met, then these amounts are deferred.

Investment income is earned through holding assets for investment purposes such as shares. It includes 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 classified 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, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

2.7 Support costs 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 of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

Page 28

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

2. Accounting policies (continued)

2.8 Intangible assets and amortisation

Intangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation. 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.

Amortisation is provided on all intangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life. During the year the amortisation rate applied was:

Software

2.9 Tangible fixed assets and depreciation

With the exception of freehold property, tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation. 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.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life. During the year the depreciation rates were:

Freehold property (Buildings only) - 2% straight line Short-term leasehold property - 25% straight line Motor vehicles - 25% straight line Fixtures and fittings - 10% - 25% straight line Computer equipment - 25% straight line Software / IT consultancy - 25% straight line

No depreciation is provided for on Freehold Land

Change of accounting policy

During the year a revaluation of freehold buildings was undertaken by Allied Surveyors and Valuers on behalf of JTL. The information provided has allowed the cost of “land” to be established and accounted for separately.

The split of land from freehold building will provide a more accurate asset value and depreciation calculation leading to improved financial information. Land will no longer be depreciated.

A new depreciation rate of 10% straight line has been created for Fixtures and Fittings and Freehold property has been amended from 4% straight line to 2% straight line. Due to the number of adjustments made it is not possible to state the effect on each line of the financial statements for the current or prior periods.

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 mark 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 at cost less impairment.

Investments in subsidiaries are measured at cost less impairment.

Page 29

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

2. Accounting policies (continued)

2.11 Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired 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 at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

2.13 Leases

Rentals payable under operating leases are charged to the Consolidted statement of financial activities on a straight-line basis over the period of the lease.

2.14 Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

2.15 Tax

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. As such, surpluses and gains are exempt from Corporation Tax providing they are applied for charitable purposes. The trading subsidiaries are subject to Corporation Tax, however, have committed to donate their 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 Instruments. The financial assets and financial liabilities of the Charity are as follows:

All other investments are classified as basic financial instruments and held at their fair value.

Financial Liabilities: Trade creditors, accruals and other creditors will be classified as financial instruments and are measured at amortised cost as detailed in note 20. Basic taxation and social security are not included 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 another financial instrument.

Page 30

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

3. Critical accounting estimates and areas of judgement

Judgements (apart from those involving estimates) have been made in the process of applying the following accounting policies that have had a significant effect on amounts recognised in the financial statements;

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 actual results. There are estimates and assumptions made by the trustees in relation to property valuations and the estimated useful lives of fixed assets that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

4. Income from donations and legacies

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Furlough grant income - - 2,787
Total 2022 2,787 2,787

5. Income from charitable activities

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
ESFA and Welsh Assembly income receivable 32,235,781 32,235,781 29,748,183
Other income receivable 2,333,595 2,333,595 2,074,266
34,569,376 34,569,376 31,822,449
Total 2022 31,822,449 31,822,449

Other income receivable of £2,333,595 (2022 £2,074,266) comprises of income from various sources including employer contributions, commercial courses, room hire, rental income, miscellaneous income and royalties.

Page 31

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

6. Income from other trading activities

Income from non charitable trading activities

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Trading income in subsidiaries 9,417,059 9,417,059 8,427,152
Total 2022 8,427,152 8,427,152
Investment income
Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Dividends and interest from listed investments 406,304 406,304 359,253
Total 2022 359,253 359,253

7. Investment income

Page 32

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

8. Expenditure on raising funds

Fundraising trading expenses

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Direct trading expenses 4,205,332 4,205,332 2,852,163
Direct trading expenses - wages and salaries 945,154 945,154 600,858
Support costs of trading 4,257,517 4,257,517 4,367,066
9,408,003 9,408,003 7,820,087
Total 2022 7,820,087 7,820,087

9. Investment management costs

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Investment management fees 111,101 111,101 125,076
Total 2022 125,076 125,076
10. Analysis of grants
Grants to Total Total
Individuals funds funds
2023 2023 2022
£ £ £
Grants, Education and training 1,556,797 1,556,797 1,826,600
Total 2022 1,826,600 1,826,600

Page 33

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

11. Other expenditure

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Loss on revaluation of fixed assets 2,785,854 2,785,854 -
See also note 17.

12. Analysis of expenditure by activities

Activities Grant
undertaken funding of Support Total Total
directly activities costs funds funds
2023 2023 2023 2023 2022
£ £ £ £ £
Education and training 29,350,928 1,556,797 5,406,339 36,314,064 35,673,285
Total 2022 27,066,301 1,826,600 6,780,384 35,673,285

13. Auditors' remuneration

2023 2022
£ £
Fees payable to the Charity's auditor for the audit of the Company's annual
accounts 37,450 29,750
Fees payable to the Company's auditor in respect of:
The auditing of accounts of subsidiaries of the Charity 16,530 14,375
Accountancy and tax services 6,950 6,050

Page 34

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

14. Staff costs

Group Group Company Company
2023 2022 2023 2022
£ £ £ £
Wages and salaries 16,861,116 16,005,959 14,100,935 13,043,722
Social security costs 1,722,373 1,825,067 1,555,049 1,498,417
Contribution to defined contribution pension
schemes 1,907,138 1,847,430 1,776,580 1,621,933
20,490,627 19,678,456 17,432,564 16,164,072

During the year termination payments of £1,188 (2022:£Nil) were paid.

The average number of persons employed by the Company during the year was as follows:

Group Group Company Company
2023 2022 2023 2022
No. No. No. No.
Directors 10 9 7 6
Operations 362 300 324 270
Support 130 146 67 90
502 455 398 366

The average headcount expressed as full-time equivalents was:

Group Group Company Company
2023 2022 2023 2022
No. No. No. No.
Directors 10 9 7 6
Operations 354 296 316 266
Support 124 144 65 88
488 449 388 360

Page 35

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

14. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2023 2022
No. No.
In the band £60,001 - £70,000 13 9
In the band £70,001 - £80,000 1 2
In the band £80,001 - £90,000 1 3
In the band £90,001 - £100,000 2 1
In the band £100,001 - £110,000 2 -
In the band £110,001 - £120,000 1 -
In the band £120,001 - £130,000 1 2
In the band £200,001 - £210,000 1 -
In the band £250,001 - £260,000 - 1

15. Trustees' and Key Management Personnel Remuneration and Expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL) .

During the period, three trustees were reimbursed £556 (2022: £537) for expenses relating to travel costs.

The Charity considers its key management personnel comprise of:

As noted above no trustees were remunerated during the year. The total amount of employee benefits received by key management personnel (Salary, Employer NI, Employers Pension, Benefit in Kind etc.) was £1,122,204 (2022:£1,097,294).

Page 36

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

16. Intangible assets

Group

Computer
software Goodwill Total
£ £ £
At 1 August 2022 58,315 24,001 82,316
Additions 109,280 - 109,280
Transfers between classes 11,315 - 11,315
At 31 July 2023 178,910 24,001 202,911
Amortisation
At 1 August 2022 13,508 24,001 37,509
Charge for the year 15,522 - 15,522
Transfers between classes 10,372 - 10,372
At 31 July 2023 39,402 24,001 63,403
Net book value
At 31 July 2023 139,508 - 139,508
At 31 July 2022 44,807 - 44,807

There are no intangible assets within the parent entity.

Page 37

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

17. Tangible fixed assets

Group

Short-term
Freehold leasehold Motor Fixtures and Computer Software / IT
property property vehicles fittings equipment consultancy Total
£ £ £ £ £ £ £
Cost or valuation
At 1 August 2022 9,181,059 315,176 - 5,329,478 1,039,084 628,523 16,493,320
Additions 3,061,804 336,348 59,980 1,081,020 227,706 62,204 4,829,062
Disposals - (71,111) - (2,773,216) (606,401) (179,904) (3,630,632)
Transfers between classes 1,249,000 - - (1,249,712) 712 (11,315) (11,315)
Revaluations surplus 1,509,831 - - - - - 1,509,831
Revaluations deficit (3,879,194) - - - - - (3,879,194)
At 31 July 2023 11,122,500 580,413 59,980 2,387,570 661,101 499,508 15,311,072
Depreciation
At 1 August 2022 1,540,542 187,811 - 4,241,067 833,757 358,958 7,162,135
Charge for the year 188,883 78,881 10,669 430,198 87,213 120,335 916,179
On disposals - - - (2,739,324) (606,401) (179,904) (3,525,629)
Transfers between classes 511,556 - - (511,556) - (10,372) (10,372)
On revalued assets (2,240,981) - - - - - (2,240,981)
At 31 July 2023 - 266,692 10,669 1,420,385 314,569 289,017 2,301,332

Page 38

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

17. Tangible fixed assets (continued)

Group (continued)

Short-term
Freehold leasehold Motor Fixtures and Computer Software / IT
property property vehicles fittings equipment consultancy Total
£ £ £ £ £ £ £
Net book value
At 31 July 2023 11,122,500 313,721 49,311 967,185 346,532 210,491 13,009,740
At 31 July 2022 7,640,517 127,365 - 1,088,411 205,327 269,565 9,331,185
Company
Freehold Fixtures and Computer Software / IT
property fittings equipment Consultancy Total
£ £ £ £ £
Cost or valuation
At 1 August 2022 9,181,059 5,370,606 869,158 617,208 16,038,031
Additions 3,061,804 855,113 174,509 62,204 4,153,630
Disposals - (2,707,835) (606,401) (179,904) (3,494,140)
Transfers between classes 1,249,000 (1,249,712) 712 - -
Revaluations surplus 1,509,831 - - - 1,509,831
Revaluations deficit (3,879,194) - - - (3,879,194)
At 31 July 2023 11,122,500 2,268,172 437,978 499,508 14,328,158

Page 39

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

17. Tangible fixed assets (continued)
Company (continued)
Freehold Fixtures and Computer Software / IT
property fittings equipment Consultancy Total
£ £ £ £ £
Depreciation
At 1 August 2022 1,540,542 4,324,138 752,445 351,257 6,968,382
Charge for the year 188,883 378,921 63,861 120,335 752,000
On disposals - (2,702,155) (606,401) (179,904) (3,488,460)
Transfers between classes 511,556 (511,556) - - -
On revalued assets (2,240,981) - - - (2,240,981)
At 31 July 2023 - 1,489,348 209,905 291,688 1,990,941
Net book value
At 31 July 2023 11,122,500 778,824 228,073 207,820 12,337,217
At 31 July 2022 7,640,517 1,046,468 116,713 265,951 9,069,649

Page 40

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

17. Tangible fixed assets (continued)

All fixed assets are initially recorded at cost. As at the year ended 31 July 2023 the freehold properties held were professionally revalued. Where the value had increased an amount of £2,657,472 has been recognised within the revaluation reserve. Where the value had decreased an amount of £2,785,854 has been recognised as an expense within the profit and loss account.

The Group has adopted a policy of revaluation for freehold properties. Had these assets been measured at historic cost, the carrying values would have been as follows:

Group Group Company Company
2023 2022 2023 2022
£ £ £ £
Freehold property 11,250,882 7,640,517 11,250,882 7,640,517

Included in the net book value of property displayed above are the following amounts ascribable to land:

Group Group
2023 2022
£ £
Freehold land 3,095,200 2,412,696

Note: A leasehold of building was acquired in Carlisle with a life of 53 years which is being depreciated over 25 years.

18. Fixed asset investments

Listed
investments
Group £
Cost or valuation
At 1 August 2022 33,768,807
Additions 7,550,898
Disposals (12,437,112)
Revaluations 332,382
Movement in cash held by investment managers 112,132
At 31 July 2023 29,327,107
Net book value
At 31 July 2023 29,327,107
At 31 July 2022 33,768,807

Page 41

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

18. Fixed asset investments (continued)

Investments
in subsidiary Listed
companies investments Total
Company £ £ £
Cost or valuation
At 1 August 2022 132,003 33,768,807 33,900,810
Additions - 7,550,898 7,550,898
Disposals - (12,437,112) (12,437,112)
Revaluations - 332,382 332,382
Movement in cash held by investment managers - 112,132 112,132
At 31 July 2023 132,003 29,327,107 29,459,110
Net book value
At 31 July 2023 132,003 29,327,107 29,459,110
At 31 July 2022 132,003 33,768,807 33,900,810

Principal subsidiaries

The following were subsidiary undertakings of the Company:

Names Company Registered office or principal Class of Holding
number place of business shares
Develop Training Limited 06115331 Derby Training Centre, Ascot Drive, Ordinary 100%
Derby, DE24 8GW
CompEx Certification Limited 02336110 Stafford House, 120-122 High Ordinary 100%
Street, Orpington, Kent, BR6 0JS

The financial results of the subsidiaries for the year were:

Names Income Expenditure Profit/(Loss) Net assets
£ £ for the year £
£
Develop Training Limited 7,818,597 (8,395,184) (576,587) (3,565,085)
CompEx Certification Limited 1,925,675 (1,648,604) 277,071 277,073

Develop Training Group Limited was dissolved on 13 December 2022.

Page 42

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Group and Company

2023 2022
£ £
Investments at fair value comprise:
Equities 23,106,048 26,975,356
Securities 5,545,319 5,392,399
Cash within investment portfolio 675,740 1,401,052
29,327,107 33,768,807

The fair value of listed investments is determined by reference to the bid (sale) price at close of business on the date of the valuation or fair value if the market value is unavailable.

19. Debtors

Group Group Company Company
2023 2022 2023 2022
£ £ £ £
Due within one year
Trade debtors 4,526,808 3,987,985 3,266,820 3,052,558
Amounts owed by group undertakings - - 4,569,639 3,818,230
Other debtors 446,529 143,448 413,989 112,799
Prepayments and accrued income 1,274,829 1,066,261 991,931 548,673
6,248,166 5,197,694 9,242,379 7,532,260

As at the year end, JTL was owed £295,975 (2022: £222,039) from CompEx Certification Limited and £4,273,664 (2022: £3,596,191) from Develop Training Limited. £80,027 interest was charged for the year.

Page 43

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

20. Creditors: Amounts falling due within one year

Group Group Company Company
2023 2022 2023 2022
£ £ £ £
Trade creditors 3,345,433 3,095,833 2,874,490 2,921,004
Other taxation and social security 708,432 717,136 437,196 400,045
Other creditors 610,689 757,540 518,310 487,899
Accruals and deferred income 4,757,802 4,717,482 4,231,326 4,300,743
9,422,356 9,287,991 8,061,322 8,109,691

Deferred income relates to the license and apprenticeship fees being recognised over the period that they relate to.

Group Group
2023 2022
£ £
Deferred income
Deferred income at 1 August 2022 326,596 248,495
Resources deferred during the year 775,410 342,538
Amounts released from previous periods (326,596) (264,437)
775,410 326,596

21. Provisions

Group and Company

Dilapidations
£
At 1 August 2022 244,166
Additions 222,708
466,874
At 31 July 2023

Page 44

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

22. Statement of funds

Statement of funds - current year

Balance at 1 Gains/ Balance at 31
August 2022 Income Expenditure (Losses) July 2023
£ £ £ £ £
Unrestricted funds
General Funds 42,564,824 44,392,739 (48,619,022) 332,382 38,670,923
Revaluation reserve - - - 2,657,472 2,657,472
42,564,824 44,392,739 (48,619,022) 2,989,854 41,328,395

The transfers in amount of £2,657,472 relates to a gain recognised on the revaluation of the fixed asset freehold properties at the year ended 31 July 2023.

Statement of funds - prior year

Balance at Gains/ Balance at
1 August 2021 Income Expenditure Taxation (Losses) 31 July 2022
£ £ £ £ £ £
Unrestricted
funds
General Funds 46,002,012 40,611,641 (43,618,448) 41,891 (472,272) 42,564,824

23. Summary of funds

Summary of funds - current year

Balance at 1 Gains/ Balance at 31
August 2022 Income Expenditure (Losses) July 2023
£ £ £ £ £
General funds 42,564,824 44,392,739 (48,619,022) 2,989,854 41,328,395
Summary of funds - prior year Summary of funds - prior year
Balance at Gains/ Balance at
1 August 2021 Income Expenditure Taxation (Losses) 31 July 2022
£ £ £ £ £ £
General funds 46,002,012 40,611,641 (43,618,448) 41,891 (472,272) 42,564,824

Page 45

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

24. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted Total
funds funds
2023 2023
£ £
Tangible fixed assets 13,009,740 13,009,740
Intangible fixed assets 139,508 139,508
Fixed asset investments 29,327,107 29,327,107
Current assets 8,741,270 8,741,270
Creditors due within one year (9,422,356) (9,422,356)
Provisions for liabilities and charges (466,874) (466,874)
Total 41,328,395 41,328,395

Total

Analysis of net assets between funds - prior year

Unrestricted Total
funds funds
2022 2022
£ £
Tangible fixed assets 9,331,185 9,331,185
Intangible fixed assets 44,807 44,807
Fixed asset investments 33,768,807 33,768,807
Current assets 8,952,182 8,952,182
Creditors due within one year (9,287,991) (9,287,991)
Provisions for liabilities and charges (244,166) (244,166)
Total 42,564,824 42,564,824

Total

Page 46

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

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

Group Group Group
2023 2022
£ £
Net expenditure for the year (as per Statement of Financial Activities) (3,893,901) (3,437,188)
Adjustments for:
Depreciation charges 916,179 1,161,125
Amortisation charges 15,522 12,339
Gains on investments (332,382) 474,610
Dividends, interests and rents from investments (406,821) (359,253)
Loss on the sale of fixed assets 105,003 -
(Increase)/decrease in debtors (1,050,472) 1,712,573
Increase in creditors 134,365 709,256
Losses on revaluation on fixed assets 2,785,854 -
Tax charge - (41,891)
Increase in provisions 222,708 15,555
Tax received - 41,891
Net cash provided by/(used in) operating activities (1,503,945) 289,017
26. Analysis of cash and cash equivalents
Group Group
2023 2022
£ £
Cash in hand 2,493,104 3,754,488
Total cash and cash equivalents 2,493,104 3,754,488
27. Analysis of changes in net debt
At 1 August At 31 July
2022 Cash flows 2023
£ £
£
Cash at bank and in hand 3,754,488 (1,261,384) 2,493,104
3,754,488 (1,261,384) 2,493,104

Page 47

DocuSign Envelope ID: 43C83E4D-7F53-4F1A-948C-9E9C4C1840FDDocuSign Envelope ID: 27A9E2C5-3FB7-436C-943D-3A75A7A2C694

JTL (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

28. Operating lease commitments

At 31 July 2023 the Group and the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Group Group Company Company
2023 2022 2023 2022
£ £ £ £
Not later than 1 year 1,084,411 1,173,148 582,580 547,636
Later than 1 year and not later than 5 years 2,317,408 2,451,596 1,262,169 1,171,833
Later than 5 years 206,400 230,786 206,400 230,786
3,608,219 3,855,530 2,051,149 1,950,255

29. Related party transactions

JTL had the following transactions and year end balances with The Electrical Contractors’ Association Limited (“ECA”) and Unite the Union, both of which are members of the charitable company. JTL also had the following transactions and year end balances with the Joint Industry Board for the Electrical Contracting Industry (“JIB”) which has as its constituent parties the ECA and Unite the Union.

Information about related party transactions and outstanding balances is set out below:

Outstanding
Expenditure Balances
£ £
Electrical Contractors’ Association - -
For the year ending 31 July 2023 - -
For the year ending 31 July 2022 24,918 -
Joint Industry Board - -
For the year ending 31 July 2023 / Balance as at 31 July 2023 193,956 (2,174)
For the year ending 31 July 2022 / Balance as at 31 July 2022 466,352 (6,594)

Amounts payable to ECA includes the BUPA annual membership, plus additional services. Amounts payable to JIB relate to Electrotechnical and Plumbing Apprentice registration fees and Health & Safety Assessment fees.

Page 48