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2020-12-31-accounts

Registered number: 05120951 Charity number: 1108792

ENGLISH UK LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

ENGLISH UK LIMITED

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the charity, its Trustees and advisers 1
Chairman's statement 2
Trustees' report 3 - 11
Independent auditor's report on the financial statements 12 - 14
Consolidated statement of financial activities 15
Consolidated balance sheet 16
Charity balance sheet 17
Consolidated statement of cash flows 18
Notes to the financial statements 19 - 41

ENGLISH UK LIMITED

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020

Trustees S Phillips, Chair M Rendell, Vice Chair J Brinkmann J Dancaster F Davis C Diamantino S Doherty S Etchells S Fordham C Moonie N Paramor Company registered number 05120951 Charity registered number 1108792 Registered office Flag House 47 Brunswick Court London SE1 3LH Company secretary Nuria Felip-Puignou Chief executive officer J Gray Director of Membership H Japes Director of Marketing A Wright Finance Manager N Felip Puignou Business Development Director T Barker Independent auditor Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL Bankers National Westminster Bank plc PO Box 2354 65 Picadilly London W1A 2PP

Page 1

ENGLISH UK LIMITED

(A company limited by guarantee)

CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020

The Chairman presents his statement for the year.

Until the pandemic struck in early 2020, the UK was a dominant player in the global ELT industry, attracting almost twice as many international students as any of our anglophone competitors. We welcomed 550,000 students each year, with around half coming from Europe. Around 90,000 students went onto study in further and higher education institutions. UK ELT adds £1.4bn and 35,000 jobs to the UK economy, underpins our £20bn international education sector, and builds positive relations between the UK and other nations.

Data from the international passenger survey collected by VisitBritain in 2019 showed that visitors who studied English in the UK spent more than twice as much as the average visitor and stayed almost three times as long. These visitors were predominantly under 35, suggesting a valuable opportunity to capture their loyalty early, and they came for a dual purpose. ELT has long straddled the tourism and education sectors.

However, since March 2020, the English language teaching centres that are members of English UK lost almost 80% of their business to Covid-19. This amounts to a direct loss of revenue of £590 million. Over 90% of staff working in the sector have been impacted – they have been furloughed, made redundant or are working reduced hours or for reduced pay.

Hopes for any significant business recovery in 2021 seem increasingly unlikely as travel restrictions continue. The sector relies entirely on an international market. We cannot replace our customers with domestic ones.

When surveyed in early 2021, one third of English UK member centres did not expect to see any recovery at all this year. Two thirds expected less than 40% of pre-Covid-19 volumes. However, the UK ELT sector is resilient and viable. Despite losing 80% of its customers in 2020, so far only 13% of its businesses have closed their doors permanently due to the pandemic.

While each of these closures is heart-breaking, the fact that this number is not higher is testament to the strength of the market before the pandemic – 2019 was a growth year for UK ELT - and the dedication of centre owners and directors to the future of their organisations and international education.

Demand to study English in the UK remains high and we expect our students to return when travel restrictions ease and confidence rises. History tells us that global economic recession drives demand as families and individuals prioritise education and personal development.

For me, what the past year shown is the strength of the community in our industry, and I am so proud of that. We have pulled together and worked together.

We have reasons to be hopeful. UK ELT is innovative. UK ELT is resourceful. UK ELT is resilient. The sector has already proven itself to be so.

To those who have served on our boards, committees and advisory groups in this most challenging of years: thank you for your generous support and advice.

We have much to do. However, we are feeling positive about what lies ahead. The English UK team has been – and remains - resourceful, brilliant and responsive. We will be here to support English UK members and UK ELT.

Chairman

Date: 28 April 2021

Page 2

ENGLISH UK LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees present their annual report together with the audited financial statements of the charity for the year 1 January 2020 to 31 December 2020.

The annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

The reference and administrative information set out on page 1 forms part of this report.

Structure, governance and management

Constitution

English UK is a company limited by guarantee (Company No. 05120951) and a registered charity (Charity No. 1108792). The company was incorporated on 6 May 2004 and its governing documents are the Memorandum and Articles of Association. The company registered as a charity with the Charity Commission on 1 April 2005.

Trustees

The Trustees of the charity constitute directors of the company for the purposes of company law. This report is also a directors’ report as required by Section 234 of the Companies Act 2006. The Articles provide for a maximum of 12 directors, elected by the representatives of member centres in a postal ballot.

The following Trustees have served throughout the year to 31 December 2020, and to the date of signing this report, except as shown:

Trustees Appointed/resigned S Phillips (Chair) M Rendell (Vice Chair) J Brinkmann J Dancaster F Davis C Diamantino S Doherty S Etchells S Fordham C Moonie N Paramor E Tyler Resigned 8 February 2021

The Board of Trustees is recruited from the representatives of member centres by open election. The Chair and the ViceChair are appointed by the Board from among its number. Since board members have almost always been the representatives of member centres for a significant number of years and are therefore familiar with the sector and current issues, induction after a board election focuses on their role and responsibilities as trustees and directors, and an update on the charity’s strategy, policies and current issues.

Trustees are elected by the member centres. Trustees’ terms of appointment are for a period of three years at the end of which they may offer themselves for re-election. A maximum term of six years (save for the Chair which is nine years) is stipulated in the governing documents. The board consists of a maximum of 12 members.

The Board of Trustees met four times in 2020 (2019 - five).

Subsidiary companies

English UK wholly owns the £1 issued share capital of English UK Enterprises Limited (Company No. 05200973), which carries out the charity’s commercial operations. The Board of English UK Enterprises Limited is appointed by the Board of Trustees of the charity and gives guidance to staff on commercial activities, primarily through the Director of Marketing.

Page 3

ENGLISH UK LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Structure, governance and management (continued)

National and Regional Sub-Groups and Special Interest Groups

These operate under a short constitution approved by the Board and their activities are controlled by their local committee, which is elected from among the members in that part of the UK. The activities range from marketing initiatives to local training and professional development sessions for centre staff, in response to perceived needs among members of the subgroup. There are also two special interest groups, one for Business English and one for Young Learners, which consider matters specific to those client groups.

The activities and assets of the sub-groups and special interest groups are not consolidated within the charity’s financial statements as English UK does not control them. The total transactions of the sub-groups would not be material in the context of the charity’s accounts, and there are systems in place to minimise the risk of any contingent liability from the subgroups falling to the national association and charity.

Pay policy for key management personnel

The key management personnel of the charity are the Trustees and the members of the Executive Team referred to above. Trustees are not remunerated for their services to the charity. When setting staff remuneration levels terms agreed are in consultation with the Chair (and/or Chief Executive) and have regard to pay and employment conditions across the group, by obtaining reliable, up-to-date information about remuneration in other companies of comparable scale and complexity from the relevant HR consultants that we work with including reports and surveys produced by them. The charity has a performance measurement system in place to provide key performance indicators, as well as to motivate and develop staff.

Organisation

There is a full scheme of delegation of powers, covering both policy and financial responsibilities, agreed by the main Board.

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the charity and of their income and expenditure for that period. In preparing these financial statements, the Trustees are required to:

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

The Trustees are responsible for the maintenance and integrity of financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Page 4

ENGLISH UK LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Objectives and activities

Our mission and aims

English UK is a registered charity with a clearly defined purpose documented in the association’s charitable objects. The association’s three-year Strategic Plan for 2018 - 2020 states the following:

The charity’s objects (the Objects) are to advance the education of international students in the English language, in particular by:

  1. Promoting the teaching of the English language.

  2. Promoting the pursuit of excellence in professional standards in all aspects of the provision of courses in English Language.

  3. Maintaining a rigorous system of accreditation of courses in English language, based upon independent inspection and consistent standards.

  4. Promoting the accredited courses in the English language provided by members of the charity as the preferred choice of students.

Our mission: to lead the UK ELT industry to success, through innovation and intelligence.

Our vision: to provide a high-quality service to our members to ensure the industry delivers the best possible student experience, and to speak for UK ELT at the highest level of influence.

Our values: quality, integrity, innovation and respect.

The mission is supported by key strategic objectives in five key areas:

These are underpinned by clear objectives in:

Achievements and performance

Main achievements of the charity

As UK ELT’s national association, English UK exists to help its members and the wider sector to succeed in a tough operating environment, representing their interests at all levels. 2020 would have been the third year of our 2018 – 2020 strategic plan to ‘to lead the UK ELT industry to success through innovation and intelligence’.

However, the impact of Covid-19 from early 2020 on English UK and UK ELT was unexpected and unprecedented.

We pivoted English UK’s focus and adapted the association’s strategy in response. Our aim was and continues to be to support English UK members through the crisis and to maximise the recovery of the UK ELT sector. Following are details of English UK’s Covid-19 response and recovery strategy, and progress against objectives so far.

Page 5

ENGLISH UK LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance (continued)

Quality

To support, develop and promote the quality of UK ELT to maximise the student experience and sustain our reputation.

In English UK’s role as partners with the British Council in the Accreditation UK scheme, and through the governance mechanisms of the Accreditation UK Executive Board and Accreditation Scheme Advisory Committee, we ensured that the scheme adapted during 2020 in response to Covid-19. These responses included a temporary suspension of inspections and extending the current accreditation cycle by one year, reducing annual fees, developing a voluntary Code of Practice for online teaching, piloting remote inspections, developing the concept of provisional accreditation and reviewing the status of centres undergoing financial restructuring.

We built, grew and constantly updated the Covid-19 hub on our website to give members the latest information, which had 48,000+ visits by the end of 2020. We circulated countless Covid-19 e-bulletins. In June, we created the first Covid-19 secure guidance for ELT centres, and updated it regularly, ending the year on version six.

We placed over 150 students on new courses (largely online) through the Student Emergency Support scheme and provided guidance to far more.

Membership

To serve all our members by building a proactive, responsive and sustainable membership association.

Since March 2020, we have held weekly Q&As for members with English UK’s executive team, attracting 50 – 100 participants each week.

Considering the extraordinary pressure the Covid-19 pandemic has placed on the UK ELT industry, the English UK Board of Trustees carefully reviewed membership fees for 2020, reducing supplementary subscriptions by 50% and offering flexible payment plans wherever possible.

In the later part of the year, we launched a refreshed online forum as a space where owners, directors and staff of member centres can easily connect with each other to take part in peer-to-peer discussion, share information and ask advice.

We engaged with members and the wider sector via 734 posts to our 49,500 social media followers with 8,800 reactions, comments, shares and 15,300 clicks.

Quotes from English UK members, December 2020:

‘The team have excelled themselves in support of all its members over the last 6 months - you are the glue that has bonded us all - long may it continue.’

‘You have been the light at the end of the tunnel, the voice of re-assurance and positivity. We can’t thank the team enough for what they have been doing for us. What a difficult task, but done with so much passion and enthusiasm.’

Page 6

ENGLISH UK LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance (continued)

Intelligence

To build a comprehensive knowledge base which helps us and our members to make evidence-informed decisions backed by robust insight and data.

Working with Bonard, English UK’s insight partner, we published a report assessing the impact of Covid-19 on UK ELT in summer 2020 and again at the end of the year.

We adapted our quarterly intelligence scheme, QUIC, collecting 816 data submissions from members, which in addition to our annual student statistics report, will help us track the pattern of recovery.

We ran a successful international DELTM course for 19 participants in China via online channels.

In partnership with the British Council and Bonard, we commenced work on a market report based on primary and secondary research, focussing on Europe as a source market in the future. This report will look at perspectives and trends post-Brexit and post-pandemic.

Mainly from our homes, over the course of 2020 we ran 135 webinars and Q&As, attracting over 12,500 attendees and recording views. Our free online members conference in May attracted record numbers – 488 delegates - as our community gathered together and took stock.

Promotion

To maximise business opportunities for our members and the wider UK ELT sector through targeted promotional activity, led by intelligence.

We held an online three-day international summit in September on a ‘pay-what-you-can’ model for 618 members and international partners. Following this event, at a time when member centres were struggling with the impact of no high season, 70% of attendees said the event ‘made them feel more confident going forwards’ and 78% said the event gave them a ‘greater sense of the UK ELT community’. The summit featured 22 seminars (17 hours of content) on UK ELT and 2,000 one-to-one meetings, pre-scheduled between participants from the UK and internationally. 97% said these meetings were ‘good‘ or ‘excellent’.

We planned and launched two online StudyWorld events for January and March 2021, priced in such a way as to be accessible and affordable for as many member centres as possible.

Towards the end of 2020, we published English UK’s ambitious, achievable roadmap for how UK ELT can rebuild lost trade, targeting five audience groups in phase one.

Page 7

ENGLISH UK LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance (continued)

Public Affairs

To be the voice of the industry, involving the widest possible group of stakeholders in our campaigning.

We engaged with the UK government through our participation in the Education Sector Advisory Group (chaired by DIT and DfE ministers) and direct relationships with the Home Office, Department for International Trade, Department for Education and Department for Digital, Culture, Media and Sport. We corresponded directly and via members with 70+ MPs and published our policy asks in our Covid-19 position paper calling on the government to help kickstart UK ELT. In June 2020 Caroline Ansell MP raised and led an adjournment debate in the House of Commons. In a short but moving debate, MPs from all parties warmly praised the industry and asked the government to extend the support it is providing.

We created a new External Relations Advisory Group for members to review our campaigns and coordinate these in a local context. The group met once in 2020.

We were able to win significant concessions in the form of discretionary business rates relief and a range of Covid-19 support grants from key local authorities, although our fight for blanket national relief continues. The six-month flexible work and study route was a significant visa success, and a nine-month reprieve on the end of ID card travel from the EU is critical to any short-term recovery.

Public benefit

The trustees are mindful that they need to consider and explain how the charity fulfils its charitable objects and confers an appreciable public benefit. They have given careful consideration to the Charity Commission’s general guidance on public benefit and consider that effectively all the operations of the charity tend towards that end, for example:

Page 8

ENGLISH UK LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance (continued)

Overall the Trustees are of the opinion that English UK’s key operations, both on its own account and with partner organisations, are planned and directed to fulfil its key charitable objective of the advancement of the education of international students in the English language.

Financial review

Results for the year

A summary of the year’s results can be found on page 15 of the financial statements. Total income for the group for the year ended 31 December 2020 amounted to £1,104,115 (2019 - £2,095,370). The income is principally derived from the subscriptions payable by member centres and the revenues earned from the events and fairs hosted by the group.

The group’s expenditure for the year ended 31 December 2020 totalled £1,166,767 (2019 - £2,222,008). As shown in the financial statements, the great majority of expenditure was directed towards the main objective of English UK Limited of advancing the education of international students in the English language.

The net expenditure for the year was therefore £62,652 (2019 – net expenditure of £126,638).

Financial position

A summary of the charity’s financial position as at the year-end can be found on page 16 of the financial statements. At 31 December 2020, the group held net assets totalling £1,875,461 (2019 - £1,938,113).

Of the total funds of £1,875,461 (2019 - £1,938,113) of the group at 31 December 2020, £85,779 (2019 - £80,581) is attributable to the assets of the Student Emergency Support Fund, a designated fund which steps in if a centre closes to allow the students to complete their course (at other member centres) and to return home (see note 19). The fund was originally established in 1992 and has been built up by contributions through an additional subscription and transfers from the general fund. It gives international students at English UK member centres a degree of assurance and therefore contributes to the overall charitable objective. During the year, £2,344 was utilised from the fund and an additional £7,542 was designated in the year. This fund will continue to be utilised as and when required.

A further £11,291 (2019 - £10,866) of the total fund balances at 31 December 2020 is in relation to the Eddie Byers Scholarship fund. This is an unrestricted designated fund which will be used to provide financial support to aspiring students seeking to study English in the UK (see note 19).

Following the sale of the St John Street property and purchase of the new property in Bermondsey in 2018, management considered it appropriate to designate the fixed assets of the group as they are expected to be used in the long term to assist in meeting the Group’s charitable objects and are not considered to be liquid free reserves. The balance on this fund amounted to £1,507,585 (2019 - £1,561,451) at 31 December 2020.

Total funds also included a restricted fund balance £4,908 at 31 December 2019 in relation to the visa review (see note 19). This was set up in 2010 for the judicial review of policies adopted by the UK Border Agency regarding student visas. The balance of the fund was used in 2020 towards future action undertaken by the charity in relation to student visa issues.

Reserves policy

The Trustees believe the free reserves of the group should represent around half of the total expenditure of the group in a typical year, which for 2020 was approximately £0.6m (2019 - £1.1m). The free reserves are held partly to ensure that the very seasonal cash flow due to the timing of StudyWorld does not require English UK to arrange a temporary overdraft, and partly to ensure that if income should decrease unexpectedly and significantly in any year, orderly retrenchment could be carried out.

The free reserves of the group at 31 December 2020, which the charity defines as net current assets held within the general fund (see note 18), were £270,606 (2019 - £280,307).

This is substantially below the desired level as indicated in the reserves policy above. However, the trustees note the unprecedented impact of Covid-19 on UK ELT and English UK. In view of this, the Finance Panel and Trustees will review the reserves policy for 2021 and beyond.

Page 9

ENGLISH UK LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Impact of COVID-19 and going concern

From early 2020 to the date that the financial statements were approved, the coronavirus (Covid-19) outbreak had spread worldwide and caused extensive disruptions to businesses as well as economic activities globally including the UK.

We have considered the effects of the Covid-19 pandemic on the charity’s operations and have concluded that the impact is significant, but manageable. Following the advice issued by the UK Government regarding employees working from home and other social distancing measures, we have enacted procedures to facilitate this and have a detailed plan that enables effective operation to continue whilst employees are not physically present in the charity’s offices.

Trustees acknowledge and recognise the potential impact of the Covid-19 pandemic on the future operations of the charity, its beneficiaries, partners and stakeholders and on wider society. As well as the personal risk to the health of its staff, the charity will lose planned income as the result of the cancellation of events, loss of member centres and/or the absence of key personnel although there will be some expenditure savings also. The reduced opportunities for scheduled face to face interaction may well impact on the ability to plan effectively for the medium term but it is not anticipated at the current time that the financial solvency of the charity will be threatened.

Principal risks and uncertainties

The Trustees have assessed the major risks to which the charity and the group are exposed, in particular those relating to the specific operational areas of the charity and the group and its finances.

The principal risks which the charity is exposed to are:

The Trustees believe that by monitoring reserves levels, ensuring controls exist over key financial systems and examining the operational and business risks faced by the charity and the group, they have established effective systems to mitigate those risks. A summary of the major risks is formally considered and updated by the Board each year.

Future plans

As UK ELT’s national association, English UK exists to help its members and the wider sector to succeed in a tough operating environment, representing their interests at all levels.

Hopes for any significant business recovery in 2021 are increasingly uncertain as new variants and a third wave in Europe keep travel restrictions in place. The sector relies entirely on a mobile international market. Our customers have been cut off by Covid-19 restrictions and we cannot replace them with domestic ones or with customers online.

One third of English UK member centres do not expect to see any recovery at all in 2021. Two thirds expect less than 40% of pre-Covid-19 student volumes.

Our continued aim is to support English UK members through the crisis and to maximise the recovery of the UK ELT sector.

  1. Agility: listen, understand and respond to the sectors’ needs

  2. Knowledge: provide expert advice and information sharing

  3. Representation: lobby for fiscal and regulatory support from the UK Government in response to the crisis and through recovery

  4. Community of peers: facilitate peer-to-peer networking and support

  5. Global engagement: support the international market to maximise recovery

  6. Balance: manage financial risk for the association while continuing to offer a critical service to members.

Page 10

ENGLISH UK LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Fundraising activities

English UK does not activitely solicit donations directly from the public and does not use third parties for fundraising. Therefore it is not registered with the Fundraising Regulator and does not subscribe to any fundraising codes of practice. Were donations from individuals or trusts and foundations to be received, English UK would ensure personal data is appropriately protected. English UK received no complaints within the year regarding fundraising.

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

Approved by order of the Trustees and signed on their behalf by:

S Phillips

(Chair of Trustees) Date: 28 April 2021

M Rendell (Trustee)

Page 11

ENGLISH UK LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ENGLISH UK LIMITED

Opinion

We have audited the financial statements of English UK Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 December 2020 which comprise the Consolidated statement of financial activities, the consolidated balance sheet, the charity balance sheet, the consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Emphasis of matter

We draw attention to the Trustees’ report and accounting policies, which describe the economic and social disruption the group is facing as a result of COVID-19 which is impacting the group’s ability to deliver its activities. The crisis has created economic, social and operational uncertainties which cannot be fully quantified or predicted particularly in the sector that the group operates.

Our opinion is not modified in respect to this matter.

Page 12

ENGLISH UK LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ENGLISH UK LIMITED (CONTINUED)

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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.

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 13

ENGLISH UK LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ENGLISH UK LIMITED (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

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

We did not identify any irregularities, including fraud.

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

Use of 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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Katharine Patel (Senior Statutory Auditor) for and on behalf of Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Date: 17 June 2021

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ENGLISH UK LIMITED

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Income from:
Donations
2
Charitable activities
3
Other trading activities
4
Investments
5
Other income
6
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2020
£
128,174
731,269
230,136
449
14,087
1,104,115
87,245
1,074,614
1,161,859
(57,744)
1,933,205
(57,744)
1,875,461		 Restricted
funds
2020
£
-
-
-
-
-
-
-
4,908
4,908
(4,908)
4,908
(4,908)
-		 Total
funds
2020
£
128,174
731,269
230,136
449
14,087
1,104,115
87,245
1,079,522
1,166,767
(62,652)
1,938,113
(62,652)
1,875,461		 Total
funds
2019
£
1,169
969,088
1,080,565
1,616
42,932
2,095,370
748,100
1,473,908
2,222,008
(126,638)
2,064,751
(126,638)
1,938,113

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

The notes on pages 19 to 43 form part of these financial statements.

Page 15

ENGLISH UK LIMITED (A company limited by guarantee) REGISTERED NUMBER: 05120951

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2020

Note
Fixed assets
Intangible assets
14
Tangible assets
15
Current assets
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one year
18
Net current assets
Total net assets
Group funds
Restricted funds
19
Unrestricted funds
. Designated funds
19
. General funds
19
Total funds		 191,596
631,929
823,525
(455,851)		 2020
£
19,758
1,488,029
1,507,787
227,009
836,960
1,063,969
(687,308)
367,674
1,875,461
-
1,604,857
270,604
1,875,461		 2019
£
22,380
1,539,072
1,561,452
376,661
1,938,113
4,908
1,652,898
280,307
1,938,113

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 have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

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

S Phillips (Chair of Trustees)

M Rendell (Trustee)

Date: 28 April 2021

The notes on pages 19 to 43 form part of these financial statements.

Page 16

ENGLISH UK LIMITED (A company limited by guarantee) REGISTERED NUMBER: 05120951

CHARITY BALANCE SHEET AS AT 31 DECEMBER 2020

Note
Fixed assets
Intangible assets
14
Tangible assets
15
Investments
16
Current assets
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one year
18
Net current assets
Total net assets
Charity funds
Restricted funds
19
Unrestricted funds
. Designated funds
19
. General funds
19
Total funds		 177,122
587,891
765,013
(415,809)		 2020
£
19,758
1,488,029
1
1,507,788
222,670
739,014
961,684
(657,558)
349,204
1,856,992
-
1,604,857
252,135
1,856,992		 2019
£
22,380
1,539,072
1
1,561,453
304,126
1,865,579
4,908
1,652,898
207,773
1,865,579

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 have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

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

S Phillips (Chair of Trustees)

M Rendell (Trustee)

Date: 28 April 2021

The notes on pages 19 to 43 form part of these financial statements.

Page 17

ENGLISH UK LIMITED

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Cash flows from operating activities
Net cash (used in)/provided by operating activities (note 22)
Cash flows from investing activities
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
Cash inflows from new borrowing
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January 2020
Cash and cash equivalents at 31 December 2020		 2020
£
(251,062)
-
(4,418)
449
(3,969)
50,000
50,000
(205,031)
836,960
631,929		 2019
£
136,586
2,216
(31,039)
1,616
(27,207)
-
-
109,379
727,581
836,960

The notes on pages 19 to 43 form part of these financial statements

Page 18

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting policies

1.1 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.

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

The consolidated statement of financial activities (SOFA) and consolidated balance sheet consolidate the financial statements of the charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

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

The financial statements are presented in sterling and are rounded to the nearest pound.

1.2 Income

Income is recognised in the period in which the charity and group have entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received. Income comprises revenues from the charity’s primary purpose trading activities, subscriptions fees from members, investment and sundry income including any surplus on the disposal of tangible fixed assets. The income excludes VAT wherever charged.

1.3 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is stated inclusive of irrecoverable VAT.

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support and governance costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:

Allocation of support and governance costs

The majority of costs are directly attributable to the above headings. Governance costs (which comprise the costs associated with the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice) are split across the above expenditure headings. The major part of the support costs are attributed to the cost of charitable activities as this is the principal reason for the charity’s existence. Certain specific costs have been attributed to the cost of raising funds.

Page 19

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting policies (continued)

1.4 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the consolidated statement of financial activities.

1.5 Intangible assets and amortisation

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

The estimated useful lives are as follows:

Amortisation is provided on the following basis:

Computer software

10 % reducing balance

1.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £2,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

The estimated useful lives range as follows:

Buildings 2 % straight line Building improvements 10 % straight line Fixtures and fittings 25 % reducing balance Computer equipment 10 - 33 % reducing balance

1.7 Investments

Investments in companies are valued at cost with provision being made for any permanent diminution in value.

1.8 Debtors

Debtors are recognised at the settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

1.9 Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Page 20

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting policies (continued)

1.10 Liabilities and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

1.11 Financial instruments

The group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.12 Operating leases

Rentals paid under operating leases are charged to the consolidated statement of financial activities on a straight line basis over the lease term.

1.13 Pensions

Contributions in respect of employees’ personal pension plans are charged to the statement of financial activities in the year in which they fall due.

1.14 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

1.15 Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the trustees to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

In addition to the above, the full impact following the recent emergence of the global coronavirus pandemic is still unknown. It is therefore not currently possible to evaluate all the potential implications for the charity’s activities, beneficiaries, funders, suppliers and the wider economy. Estimates used in the accounts are subject to a greater degree of uncertainty and volatility.

As set out in these accounting policies under “going concern”, the Trustees have considered the impact of the pandemic on the charity and have concluded that although there may be some negative consequences, it is appropriate for the charity to continue to prepare its accounts on the going concern basis.

Page 21

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting policies (continued)

1.16 Assessment of going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.

In a typical year, 40% of English UK’s turnover is derived from membership subscriptions and 60% from other revenue-generating activities including events and training (professional development and market development) and corporate partnerships.

Due to ongoing Covid-19 restrictions, our revenue-generating activities have been severely curtailed in 2020, and we anticipate this to continue into 2021 and 2022. Revenue from membership subscriptions is reduced due to the inevitable insolvency of several member centres. The Board of Trustees decided to reduce supplementary subscriptions for 2020 by 50% in recognition of the financial challenges facing UK ELT. We expect supplementary subscriptions to be low in 2021 as these are based on student volume in 2020 (70% reduction of student weeks in 2020 compared to 2019).

We have pivoted English UK’s focus and adapted the association’s strategy in response. Our aim is to support English UK members through the crisis and to maximise the recovery of the UK ELT sector.

The engagement of members in our activities has been higher than ever before during this period. It is our expectation that the sector will see a 60-80% recovery between 2021 and 2022 and full recovery by 2023, and this will lead to subscriptions being collected at close to pre-Covid-19 levels from 2023. We have also developed plans to pivot our face-to-face events to profitable online activities.

The staff restructure that we have already undertaken has reduced salary costs and made the organisation more flexible, agile and responsive.

Recognising that English UK’s continued ability to deliver its programme of activities will depend on continued forward secured funding from membership subscriptions, the Trustees have considered several factors in concluding that the adoption of the going concern basis in the preparation of these financial statements is appropriate. These have included:

After making this assessment, the Trustees are confident the organisation has adequate resources to operate for the foreseeable future and can adopt the going concern basis in preparing its financial statements.

Page 22

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2. Income from donations and legacies

Donations
Local authority discretionary grant
Coronavirus Job Retention Scheme income
Donations
Local authority discretionary grant
Coronavirus Job Retention Scheme income
Income from charitable activities
Member subscriptions - Basic
Member subscriptions - Supplementary
Member subscriptions - Corporate
Other income - Annual conference and AGM
Other income - SESF receipts
Brexit Readiness		 Unrestricted
funds
2020
£
2,111
25,000
101,063
128,174
Unrestricted
funds
2019
£
1,169
-
-
1,169
Unrestricted
funds
2020
£
538,644
144,596
40,487
-
7,542
-
731,269		 Total
funds
2020
£
2,111
25,000
101,063
128,174
Total
funds
2019
£
1,169
-
-
1,169
Total
funds
2020
£
538,644
144,596
40,487
-
7,542
-
731,269

3. Income from charitable activities

Page 23

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

3. Income from charitable activities (continued)

Member subscriptions - Basic
Member subscriptions - Supplementary
Member subscriptions - Corporate
Other income - Annual conference and AGM
Other income - SESF receipts
Brexit Readiness		 Unrestricted
funds
2019
£
547,098
270,737
44,250
26,655
15,401
-
904,141		 Restricted
funds
2019
£
-
-
-
-
-
64,947
64,947		 Total
funds
2019
£
547,098
270,737
44,250
26,655
15,401
64,947
969,088

4. Income from other trading activities

Income from non charitable trading activities

StudyWorld London
Overseas fairs
Professional training and qualifications
Intelligence
Promotions
StudyWorld London
Overseas fairs
Professional training and qualifications
Intelligence
Promotions		 Unrestricted
funds
2020
£
-
-
201,336
-
28,800
230,136
Unrestricted
funds
2019
£
487,058
199,925
256,927
25,450
111,205
1,080,565		 Total
funds
2020
£
-
-
201,336
-
28,800
230,136
Total
funds
2019
£
487,058
199,925
256,927
25,450
111,205
1,080,565

Page 24

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

5. Investment income

Interest received
Interest received
6.
Other income
VAT reclaim
Insurance commission
VAT reclaim
Insurance commission		 Unrestricted
funds
2020
£
449
Unrestricted
funds
2019
£
1,616
Unrestricted
funds
2020
£
5,238
8,849
14,087
Unrestricted
funds
2019
£
18,378
24,554
42,932		 Total
funds
2020
£
449
Total
funds
2019
£
1,616
Total
funds
2020
£
5,238
8,849
14,087
Total
funds
2019
£
18,378
24,554
42,932

Page 25

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

7. Expenditure on raising funds

StudyWorld London
Overseas fairs
Intelligence
Promotions
Administration costs
Support and governance (note 9)
StudyWorld London
Overseas fairs
Intelligence
Promotions
Administration costs
Support and governance (note 9)		 Unrestricted
funds
2020
£
33,605
3,453
7,908
17,996
23,256
1,027
87,245
Unrestricted
funds
2019
£
388,733
179,882
22,116
91,412
64,004
1,953
748,100		 Total
funds
2020
£
33,605
3,453
7,908
17,996
23,256
1,027
87,245
Total
funds
2019
£
388,733
179,882
22,116
91,412
64,004
1,953
748,100

Page 26

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

8. Expenditure on charitable activities

Servicing members
Staff costs and recruitment
General promotions
Premises
Public affairs
Administration
Depreciation and amortisation
Annual conference and AGM
Corporate member services
Training and qualifications
Student emergency support fund costs
Eddie Byers Scholarship
Support and governance costs (note 9)
Brexit readiness
Training and qualifications		 Unrestricted
funds
2020
£
693,328
21,586
26,507
38,327
77,064
58,084
958
-
138,637
2,344
1,686
16,093
1,074,614
-
-
1,074,614		 Restricted
funds
2020
£
-
-
-
4,908
-
-
-
-
-
-
-
-
4,908
-
-
4,908		 Total
funds
2020
£
693,328
21,586
26,507
43,235
77,064
58,084
958
-
138,637
2,344
1,686
16,093
1,079,522
-
-
1,079,522

Page 27

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Servicing members
Staff costs and recruitment
General promotion
Premises
Public affairs
Administration
Depreciation and amortisation
Annual conference and AGM
Corporate member services
Training and qualifications
Student emergency support fund costs
Eddie Byers Scholarship
Support and governance costs (note 9)
Brexit readiness
Training and qualifications		 Unrestricted
funds
2019
£
864,743
88,078
33,639
-
91,815
59,799
36,778
212
164,400
4,054
10,813
30,594
1,384,925
-
-
1,384,925		 Restricted
funds
2019
£
-
-
-
24,036
-
-
-
-
-
-
-
-
24,036
64,947
64,947
88,983		 Total
funds
2019
£
864,743
88,078
33,639
24,036
91,815
59,799
36,778
212
164,400
4,054
10,813
30,594
1,408,961
-
-
1,473,908

Page 28

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

9. Support and governance costs

Support and governance costs
Unrestricted
funds		 Total funds
2020 2020
£ £
Auditor's remuneration
-Statutory audit services 9,600 9,600
-Other services 5,268 5,268
Professional fees 587 587
Board and sub-committee expenses 1,665 1,665
17,120 17,120
Attributed to:
Expenditure on raising funds 1,027 1,027
Expenditure on charitable activities 16,093 16,093
17,120 17,120
Unrestricted
funds		 Total funds
2019 2019
£ £
Auditor's remuneration
-Statutory audit services 7,620 7,620
-Other services 5,694 5,694
Professional fees 11,031 11,031
Board and sub-committee expenses 8,202 8,202
32,547 32,547
Attributed to:
Expenditure on raising funds 1,953 1,953
Expenditure on charitable activities 30,594 30,594
32,547 32,547

Page 29

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

10. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes
Other employee benefits		 Group
2020
£
553,260
55,254
72,554
12,260
693,328		 Group
2019
£
699,679
58,761
73,595
17,146
849,181		 Charity
2020
£
553,260
55,254
72,554
12,260
693,328		 Charity
2019
£
699,679
58,761
73,595
17,146
849,181

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

Group Group Charity Charity
2020 2019 2020 2019
No. No. No. No.
Employees 14 17 14 17

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

Group Group
2020 2019
No. No.
In the band £60,001 - £70,000 1 1
In the band £140,001 - £150,000
- 1

The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprise the trustees and the members of the Executive Team (referred to at page 1). The total remuneration (including taxable benefits and employer's pension contributions) of the key management personnel for the year was £275,071 (2019 - £368,490).

11. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2019 - £nil).

During the year ended 31 December 2020, out of pocket travelling expenses totalling £ 1,266 were reimbursed or paid directly to 7 Trustees (2019 - £3,077 to 8 Trustees) .

Trustee indemnity insurance was purchased by the charity during the year to protect it from any loss arising from the neglect or defaults of its trustees, and to indemnify the trustees or other officers against the consequences of any neglect or default on their part. The total premium paid amounted to £1,393 (2019 - £1,326), providing cover up to a maximum of £1,000,000 (2019 - £1,000,000).

12. Taxation

English UK Limited is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

Page 30

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

13. Net expenditure

This is stated after charging:

2020 2019
£ £
Staff costs 693,328 847,597
Auditor's remuneration - English UK
- Statutory audit fees 9,600 7,620
- Other services 5,268 5,694
Auditor's remuneration - English UK Enterprises Limited
- Statutory audit fees 2,460 3,660
- Other services 2,370 2,370
Depreciation 55,462 56,778
Amortisation 2,622 3,020
Operating lease charges 1,821 4,397

14. Intangible assets

Cost
At 1 January 2020
At 31 December 2020
Amortisation
At 1 January 2020
Charge for the year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Computer
software
£
34,877
34,877
12,497
2,622
15,119
19,758
22,380

Page 31

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

15. Tangible fixed assets

Group and Charity

Cost or valuation
At 1 January 2020
Additions
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Long-term
leasehold
property
£
1,373,762
-
1,373,762
34,344
27,475
61,819
1,311,943
1,339,418		 Building
improve-
ments
£
174,882
-
174,882
18,666
17,488
36,154
138,728
156,216		 Fixtures and
fittings
£
28,580
-
28,580
7,654
5,231
12,885
15,695
20,926		 Computer
equipment
£
31,894
4,418
36,312
9,382
5,267
14,649
21,663
22,512		 Total
£
1,609,118
4,418
1,613,536
70,046
55,461
125,507
1,488,029
1,539,072

Page 32

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

16. Fixed asset investments

charity
Cost
At 1 January 2020
At 31 December 2020		 Investments
in subsidiary
companies
£
1
1

Principal subsidiaries

The following was a subsidiary undertaking of the charity:

Name
Company
number
Registered office or principal
place of business
Class of
shares
English UK Enterprises Limited
05200973
Flag House, 47 Brunswick Court,
London, SE1 3LH
Ordinary
The financial results of the subsidiary for the year were:
Name
Income
£
Expenditure
£
Profit/(Loss)
for the year
£
English UK Enterprises Limited
89
(54,154)
(54,065)
17.
Debtors
Group
Group
Charity
2020
2019
2020
£
£
£
Due within one year
Trade debtors
120,505
34,065
120,505
Amounts owed by group undertakings
-
-
-
Other debtors
9,000
104,842
9,000
Prepayments and accrued income
62,091
88,102
47,617
191,596
227,009
177,122		 Holding
100%
Net assets
£
18,470
Charity
2019
£
20,162
39,338
104,842
58,328
222,670

Page 33

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

18. Creditors: Amounts falling due within one year

Bank loans
Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2020
£
50,000
158,530
-
57,112
78,692
111,517
455,851		 Group
2019
£
-
404,008
-
16,504
62,777
204,019
687,308		 Charity
2020
£
50,000
158,468
16,947
57,112
78,692
54,590
415,809		 Charity
2019
£
-
398,964
-
16,504
62,777
179,313
657,558

A Bounce Back Loan of £50,000 was taken in July 2020 to use as a cash buffer to be able to cope with any unexpected reduction of income due to the impact of COVID-19.

The Bounce Back Loan Scheme (BBLS) is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy and Industrial Strategy. The scheme is part of a wider package of Goverment support for UK business, due to the impact of COVID-19. The loan is guaranteed by the UK Government.

The interest rate agreed with the bank, Natwest plc, was 2.5% fixed rate. Under the BBLS, for the first 12 months of the loan period, interest is paid by the UK Government and there is a capital repayment holiday.

Deferred income in the main includes income received in advance for the StudyWorld event and other fairs which will take place during 2021.

A reconciliation of the movement on the deferred income balance, included in creditors above, is as follows:

Deferred income at 1 January 2020
Resources deferred during the year
Amounts released from previous periods
Deferred income at 31 December 2020		 Group
2020
£
88,516
136,460
(88,516)
136,460		 Group
2019
£
78,113
88,516
(78,113)
88,516		 Charity
2020
£
70,310
62,975
(70,310)
62,975		 Charity
2019
£
53,365
70,310
(53,365)
70,310

Page 34

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

19. Statement of funds

Group statement of funds - 2020

Unrestricted funds
Designated funds
Student Emergency Support Fund
Eddie Byers Scholarship
Fixed asset fund
General funds
General fund
Total Unrestricted funds
Restricted funds
Visa review
Total funds		 Balance at 1
January 2020
£
80,581
10,866
1,561,451
1,652,898
280,307
1,933,205
4,908
1,938,113		 Income
£
7,542
2,111
-
9,653
1,094,462
1,104,115
-
1,104,115		 Expenditure
£
(2,344)
(1,686)
(58,084)
(62,114)
(1,099,745)
(1,161,859)
(4,908)
(1,166,767)		 Transfers
in/out
£
-
-
4,420
4,420
(4,420)
-
-
-		 Balance at 31
December
2020
£
85,779
11,291
1,507,787
1,604,857
270,604
1,875,461
-
1,875,461

Page 35

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

19. Statement of funds (continued)

Group statement of funds - 2019

Unrestricted funds
Designated funds
Student Emergency Support Fund
Eddie Byers Scholarship
Fixed asset fund
General funds
General fund
Total Unrestricted funds
Restricted funds
Visa review
Brexit Readiness
Total funds		 Balance at
1 January
2019
£
69,234
20,510
1,592,427
1,682,171
353,636
2,035,807
28,944
-
28,944
2,064,751		 Income
£
15,401
1,169
-
16,570
2,013,853
2,030,423
-
64,947
64,947
2,095,370		 Expenditure
£
(4,054)
(10,813)
(62,015)
(76,882)
(2,056,143)
(2,133,025)
(24,036)
(64,947)
(88,983)
(2,222,008)		 Transfers
in/out
£
-
-
31,039
31,039
(31,039)
-
-
-
-
-		 Balance at
31 December
2019
£
80,581
10,866
1,561,451
1,652,898
280,307
1,933,205
4,908
-
4,908
1,938,113

Page 36

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

19. Charity statement of funds - 2020

Charity statement of funds - 2020
Balance at 1
January
2020		 Income Expenditure Transfers
in/out		 Balance at
31
December
2020
£ £ £ £ £
Unrestricted funds
Designated funds
Student Emergency Support Fund 80,581 7,542 (2,344) - 85,779
Eddie Byers Scholarship Fund 10,866 2,111 (1,686) - 11,291
Fixed Asset Fund 1,561,451 - (58,084) 4,420 1,507,787
1,652,898 9,653 (62,114) 4,420 1,604,857
General funds
General fund 207,773 1,094,373 (1,045,591) (4,420) 252,135
Total Unrestricted funds 1,860,671 1,104,026 (1,107,705) - 1,856,992
Restricted funds
Visa Review 4,908 - (4,908) - -
Brexit Readiness - - - - -
4,908 - (4,908) - -
Total funds 1,865,579 1,104,026 (1,112,613) - 1,856,992

Page 37

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Balance at 1
January 2019		 Income Expenditure Transfers
in/out		 Balance at 31
December
2019
£ £ £ £ £
Unrestricted funds
Designated funds
Student Emergency Support Fund 69,234 15,401 (4,054) - 80,581
Eddie Byers Scholarship Fund 20,510 1,169 (10,813) - 10,866
Fixed Asset Fund 1,592,427 - (62,015) 31,039 1,561,451
1,682,171 16,570 (76,882) 31,039 1,652,898
General funds
General fund 281,102 933,288 (975,578) (31,039) 207,773
Total Unrestricted funds 1,963,273 949,858 (1,052,460) - 1,860,671
Restricted funds
Visa Review 28,944 - (24,036) - 4,908
Brexit Readiness - 64,947 (64,947) - -
28,944 64,947 (88,983) - 4,908

The Student Emergency Support Fund steps in as a guarantor if a member centre closes down to allow the students to complete their course and return home without additional expense.

The Eddie Byers Scholarship Fund has been created in memory of our late Chief Executive, Eddie Byers, to help aspiring students study English in the UK and further the associations’ charitable mission of advancing the education of international students in the English language.

The Fixed Assets Fund represents the fixed assets of the group. The Trustees designated these as they are expected to be used in the long term to assist in meeting the group’s charitable objectives and also to enable a clear understanding of the free reserves and underlying activities of the group.

The Visa Review Fund was set up in 2010 when the charity successfully sought a judicial review of policies adopted by the UK Border Agency (UKBA) in relation to student visas. Income was provided by membership subscriptions as well as costs awarded by the Secretary of State for the Home Office, in part, to English UK.

The Brexit Readiness Fund was a grant received from the Department for Business, Energy & Industrial Strategy (‘BEIS’) in October 2019. The grant was given with the aim of preparing businesses for no deal scenario if UK would have left the EU on 31 October 2019. The grant was used to cover the cost of running four training sessions organised in London, Bristol, Manchester and Edinburgh before the end of October.

Page 38

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

20. Group analysis of net assets between funds

Group analysis of net assets between funds - 2020

Tangible fixed assets
Intangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2020
£
1,488,029
19,758
823,525
(455,851)
1,875,461		 Total
funds
2020
£
1,488,029
19,758
823,525
(455,851)
1,875,461

Group analysis of net assets between funds - 2019

Tangible fixed assets
Intangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2019
£
1,539,072
22,380
1,059,061
(687,308)
1,933,205		 Restricted
funds
2019
£
-
-
4,908
-
4,908		 Total
funds
2019
£
1,539,072
22,380
1,063,969
(687,308)
1,938,113

21. Charity analysis of net assets between funds

Charity analysis of net assets between funds - 2020
Intangible assets
Tangible fixed assets
Investments
Current assets
Creditors due within one year		 Unrestricted
funds
2020
£
19,758
1,488,029
1
1,022,481
(673,277)
1,856,992		 Total
funds
2020
£
19,758
1,488,029
1
1,022,481
(673,277)
1,856,992

Page 39

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
funds
2019
Restricted
funds
2019
£
£
Charity analysis of net assets between funds - 2019
Intangible assets
22,380
-
Tangible fixed assets
1,539,072
-
Investments
1
-
Current assets
1,181,280
4,908
Creditors due within one year
(882,062)
-
1,860,671
4,908
22.
Reconciliation of net movement in funds to net cash flow from operating activities
Group
2020
£
Net expenditure for the period (as per Statement of Financial Activities)
(62,652)
Adjustments for:
Depreciation charges
55,461
Amortisation charges
2,622
Dividends, interests and rents from investments
(449)
(Increase)/decrease in debtors
(20,445)
(Decrease)/increase in creditors
(225,599)
Net cash (used in)/provided by operating activities
(251,062)
23.
Analysis of cash and cash equivalents
Group
2020
£
Cash at bank and in hand
631,929
Total cash and cash equivalents
631,929		 Total
funds
2019
£
22,380
1,539,072
1
1,186,188
(882,062)
1,865,579
Group
2019
£
(126,638)
56,778
3,020
(1,616)
81,622
123,420
136,586
Group
2019
£
836,960
836,960

Page 40

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

24. Analysis of changes in net debt

Cash at bank and in hand
Loan due within one year		 At 1 January
2020
£
836,960
-
836,960		 Cash flows
£
(205,031)
(50,000)
(255,031)		 At 31
December
2020
£
631,929
(50,000)
581,929

25. Operating lease commitments

At 31 December 2020 the group and the charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2020
£
1,958
3,427
5,385		 Group
2019
£
2,568
5,386
7,954		 Charity
2020
£
1,958
3,427
5,385		 Charity
2019
£
2,568
5,386
7,954

26. Related party transactions

All trustees of English UK Limited are employed by organisations who are members of English UK.

Page 41

ENGLISH UK LIMITED

(A company limited by guarantee)

CHARITY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020 This page does not form part of the statutory financial statements

Total funds
Total funds
2020
2019
£
£
Basic subscriptions 538,644
547,098
Supplementary subscriptions 144,596
270,737
Total subscription income 683,240
817,835
Corporate subscriptions 40,487
44,250
Corporate member services -
(212)
Net corporate membership income 40,487
44,038
Annual conference and AGM income -
26,655
Annual conference and AGM expenditure (958)
(36,778)
Net annual conference and AGM income (958)
(10,123)
Tradeshow Access Programme income 17,600
73,000
Tradeshow Access Programme expenditure (17,839)
(72,172)
Net Tradeshow Access Programme income (239)
828
Overseas missions (incl the China Roadshow) income -
199,925
Overseas missions (incl the China Roadshow) expenditure (3,453)
(179,882)
Net overseas missions income (3,453)
20,043
Project QUIC income -
25,450
Project QUIC expenditure (7,908)
(22,116)
Net Project QUIC income (7,908)
3,334
Inward missions income -
14,930
Inward missions expenditure -
(14,795)
Net inward missions income -
135
Training and qualifications income 175,850
256,927
Training and qualifications expenditure (118,810)
(164,400)
Net professional services income 57,040
92,527
Student emergency support fund income 7,542
15,401
Student emergency support fund expenditure (2,344)
(4,054)
Net student emergency support fund income 5,198
11,347
Eddie Byers scholarship income 2,111
1,169
Eddie Byers scholarship expenditure (1,686)
(10,813)
Net Eddie Byers scholarship income 425
(9,644)

Page 42

ENGLISH UK LIMITED

(A company limited by guarantee)

CHARITY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020 This page does not form part of the statutory financial statements

Brexit readiness income - 64,947
Brexit readiness expenditure - (64,947)
Net Brexit readiness income - -
2020 recovery summit income 22,267 -
2020 recovery summit expenditure (11,379) -
Net 2020 recovery summit income 10,888 -
COVID webinar income 3,219 -
COVID webinar expenditure (7,982) -
Net COVID webinar income (4,763) -
Other income
English UK Enterprises Management charge - 39,338
Interest receivable 360 1,361
Insurance commission 8,849 24,554
VAT reclaim 5,238 18,378
Coronavirus Job Recovery Scheme income 101,063 -
Other sundry income 11,200 32,275
Discretionary grant fund income 25,000 -
151,710 115,906
Other expenditure
Staff costs and recruitment (693,328) (849,181)
General promotion (21,743) (101,523)
Premises (26,507) (32,933)
Public affairs (43,235) (24,036)
Included in restricted expenditure below 4,908 24,036
Administration (67,722) (101,071)
Irrecoverable VAT and Capital Goods Scheme (12,515) (11,774)
Depreciation and amortisation (58,084) (59,799)
Auditor's remuneration (14,868) (13,314)
Professional fees (587) (11,031)
Board and sub-committee fees (1,665) (8,202)
(935,346) (1,188,828)
Total income 1,104,026 1,656,395
Total expenditure (1,107,705) (1,758,997)
Net income/(expenditure) (3,679) (102,602)
Net expenditure on Visa review restricted fund (4,908) (24,036)
Fund balances at 1 January 2020 1,865,579 1,992,217
Fund balances at 31 December 2020 1,856,992 1,865,579

Page 43