2022-12-31-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 2022

ENGLISH UK LIMITED

(A company limited by guarantee)

CONTENTS

	Page
Reference and administrative details of the Charity, its Trustees and advisers	1
Chair's statement	2 - 3
Trustees' report	4 - 15
Independent auditor's report on the financial statements	16 - 18
Consolidated statement of financial activities	19
Consolidated balance sheet	20
Charity balance sheet	21 - 22
Consolidated statement of cash flows	23
Notes to the financial statements	24 - 48

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 2022

Trustees	M Rendell, Chair
	S Doherty, Vice Chair
	J Brown
	T Cooke
	C Diamantino
	M Doody (appointed 20 May 2022)
	S Fordham
	F Giacomini (appointed 20 May 2022)
	N Harris (appointed 20 May 2022)
	F Quaraishi
	S Roussounis
	P Zhang
Company registered number 05120951 Charity registered number 1108792 Registered office Flag House 47 Brunswick Court London SE1 3LH Company secretary N Felip Puignou Chief Executive Officer Director of Membership Marketing Communications Director Finance Manager J Gray H Japes A Wright N Felip Puignou 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)

CHAIR'S STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022

The chair presents his statement for the year.

English UK exists to support and represent the UK’s accredited English Language Teaching (ELT) centres, help them thrive and to transform the lives of English language students through learning and intercultural understanding.

English UK has been at the heart of UK ELT for almost 20 years, succeeding two separate organisations for privatelyowned and state-owned language centres.

Our mission is to harness the collective energy of our membership to champion and advance UK ELT.

We lead, represent and support our membership community to achieve its full potential.

We work for and with our members – all accredited teaching centres – to help them to be the best they can, improve their operating environment and ensure they succeed in a global industry.

In the UK, we:

• support members to aspire to and reach the highest quality of teaching and student experience and welfare

• work with educational, governmental and partner organisations and individuals to create operating conditions where ELT centres can thrive

• provide practical support for member centres, including offering a dynamic suite of market intelligence, staff training and qualifications, workshops and conferences.

Internationally, we:

• reassure and inform our international agents and partners, students and parents, and promote our offer

• explain how the UK can meet students’ needs, transform their lives and help them follow their dreams

• create opportunities for members to develop their international markets through partnerships and connections.

We aspire to make UK ELT an even better place to study and work – for everyone, both now and in the future.

We are leading the way on improving the diversity, inclusivity and environmental impact of our industry.

The global pandemic has given us the opportunity to improve English UK and the UK ELT sector as we rebuild.

The disruption we have all experienced has shown us that change is both necessary and achievable.

Our shared values are long held but have particularly guided us through the last few years of crisis. Now is the right time to re-state them clearly, and to re-affirm our commitment to their guiding principles in all our decision-making through sector recovery and growth.

Our values:

Community

We can do more together than we can alone. We celebrate and support each other.

Integrity

We are accountable for our actions and inactions. We treat everyone with respect, honesty, professionalism and understanding.

Inclusivity

Everybody belongs in UK ELT. We embrace diversity and value everyone’s perspectives and contributions to our community.

Responsibility

We prioritise the safety and wellbeing of our students, staff, colleagues, partners, peers and communities.

Sustainability

We believe in turning UK ELT green to help protect our planet, build hope and secure our future.

Pre-Covid-19, the UK was the dominant player in the global ELT industry, attracting almost twice as many international students as any of our English-speaking competitors. UK ELT injected £1.4bn into the national economy annually, supported 35,000 jobs, underpinned our £20bn international education sector, and built positive relations between the UK and the rest of the world.

Page 2

ENGUSH UK UMITED (A company limlted by guarantee) CHAIR'S STATEMENT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 Our students are keen to leam English. to advance theif educab.on and careers. to experien￿ all th8 UK has to offei. Pr8- pandemic, our ELT centre rnernbe￿ W8￿ Ihn¥iThJ. profitabb businesses. They hav8 shown irnmense resilience over the past three years.. 85% havè surwv8d d8spri8 h8wng litde income Sin￿ th& summ8f peak of2019. Global demand to stLbJy English in th8 UK r￿naInS hgh. Through our quarterfy reportsng scheme. we witnessed the gradual recovery of UK ELT in 2022 to around 80% of pre-pandemic slutsnt nurnbers. We feel positive this is the start of the bounce back of our s8Ctor. Building from the firm loundatsons ol our shaffjd valuès. overcome the (*aller¥Jès ￿ face and keep transforming lives through lèaming and intercumural underslanding. Choirrnon Mark Rendell Datg.. 19 April 2023 Page 3

ENGLISH UK LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees present their annual report together with the audited financial statements of the Group and Charity for the year 1 January 2022 to 31 December 2022. 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 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

a. 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.

b. 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 ballot.

The following Trustees have served throughout the year to 31 December 2022, and to the date of signing this report, except as shown:

Trustees	Appointed/resigned
M Rendell (Chair)
S Doherty (Vice Chair)
J Brown
T Cooke
C Diamantino
M Doody	Appointed 20 May 2022
S Fordham
F Giacomini	Appointed 20 May 2022
N Harris	Appointed 20 May 2022
F Quraishi
S Roussounis
P Zhang

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 2022 (2021 - four).

c. 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 CEO.

Page 4

ENGLISH UK LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Structure, governance and management (continued)

d. 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 sub-group. There is one special interest group, Young Learners English UK, which considers matters specific to this client group.

The activities and assets of the sub-groups and special interest group 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 sub-groups falling to the national association and charity.

e. 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 on page 1. 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.

f. 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 incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles of the Charities SORP (FRS 102);

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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

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 5

ENGLISH UK LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Objectives and activities

a. Our mission and aims

English UK is the national membership association of accredited English language teaching centres in the UK. We are a registered charity with a clearly defined purpose documented in the association’s charitable objects.

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

Our mission is to harness the collective energy of our membership to champion and advance UK ELT.

Our vision is for a UK English language teaching sector that transforms lives through learning and intercultural understanding.

Our values: community, inclusivity, integrity, responsibility, sustainability.

Achievements and performance

a. Main achievements of the Charity

2022 was a critical year for the UK ELT industry and English UK members. In 2019, the UK was the world’s most popular destination for English language students. Then came the devastation of the pandemic and new post-EU travel restrictions. Our member centres lost over 80% of their business in 2020 and 2021.

It is a testament to our members’ resilience and determination that 85% survived the first two years of the pandemic with little or no income. Figures for 2022 are expected to show around 60% of pre-pandemic student numbers.

Rebuilding confidence in travel will take time, and our customer base – predominantly European teenagers and young adults – are looking at alternatives to UK study as a result of our post-EU border policies.

School groups and parties of teenagers who came for study holidays on their ID cards are attracted to our competitors Malta and Ireland, where they can continue to enjoy passport-free travel.

Young adults who used to practise their English and fund themselves by working while studying, are choosing shorter courses or are going elsewhere for their language studies.

It is not just student supply that has been affected by Covid and new immigration regulations but staffing and homestay hosts too. Other factors, including the economy and cost of living crisis, are exacerbating the issue. This capacity challenge is the major obstacle blocking the way forward for UK ELT sector recovery and growth.

These factors, coupled with continued uncertainty around international relations, mean that we and our members must work hard to regain our position as the world’s number one destination to learn English.

It is crucial that we review our activities and refocus our efforts to build a stronger andlarger membership community; influence policy to create a more supportive operating environment in the UK; maximise recovery and growth by promoting UK ELT and English UK; stengthening sector capacity by ensuring UK ELT is a desirable place to work; and take strides towards sustainability in our sector.

In this context, in 2022 we developed and shared our vision for a UK English language teaching sector that transforms lives through learning and intercultural understanding.

Page 6

ENGLISH UK LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Achievements and performance (continued)

The aims outlined in our strategy ‘Striving to do better, seizing new opportunities’ formed the foundation of our work in 2022, and will continue to do so in the years beyond – building a strong, welcoming, inclusive, responsible and sustainable industry into the second quarter of the 21st century. And returning the UK to the number one destination for English language studies.

Our achievements towards our strategic ambitions in 2022

#1 Strong, growing community | we will successfully build a growing and engaged community of English UK member centres.

English UK is an association run by its members. Our strength is in our numbers and the engagement of our community.

We will do this by:

• promoting excellence in our community through our partnership with the British Council in Accreditation UK and the quality assurance we offer students through Student Emergency Support and our student complaints process

• communicating regularly and clearly with our members through broadcast and 1:1 channels, informing, advising, supporting, engaging, listening to and learning from them through digital and in-person

• reviewing our membership model, membership criteria and governance structures to ensure they are fit-for purpose and aligned with our mission, vision and values

• supporting the English UK family of national, regional and special interest subgroups.

We ended 2022 with 328 member centres and 38 corporate members. These numbers include 11 new member centres and four new corporate members.

At the heart of our community are our shared values and our commitment to the pursuit of excellence in UK ELT.

Through English UK’s partnership 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 continued to ensure that the scheme adapted in response to the changing needs of the sector.

In June 2022, we announced the signing of a renewed partnership agreement between English UK and the British Council that extends the arrangements for the joint management of the Accreditation UK scheme until the end of December 2025.

In September 2022, we celebrated 40 years of Accreditation UK with an event in London. The dinner at Church House in Westminster was attended by staff and volunteers who have worked with Accreditation UK since 1982 as well as representatives from the wider industry and around 50 study abroad agents on the eve of the first English UK Fam trips since 2019.

In 2022 English UK handled six complaints through the student complaints process, of which three went to the Ombudsman for final judgement. There were no calls on the Student Emergency Support scheme.

As an association, one of the strengths of English UK is our community engagement. In 2022, we further strengthened our engagement through digital and in-person channels.

We increased our number of followers and fans across all social media networks by 3.6K to 56K. LinkedIn saw the biggest increase ending the year at 20K followers, an increase of 2.7K since 2021. We posted 552 times across all networks and achieved a good average engagement rate of 3.64%. Post impressions across all networks were 322K. In addition to posts on social media we added 93 news stories to the newsfeed on our website, averaging 7.5 stories per month. Stories with the highest levels of engagement included the signing of the new Accreditation UK partnership agreement, the 40th anniversary of Accreditation UK and the subsequent UK wide Fam trips, the videos shared as part of our English with Confidence campaign, and the plight of UK ELT post Brexit.

We continued to hold regular online membership updates and Q&As (bi-weekly moving to monthly later in the year) for members with English UK’s executive team, attracting 20 – 30 participants each week.

Page 7

ENGLISH UK LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Achievements and performance (continued)

In May 2022, we held our first full-sized Members’ Conference & AGM since 2019. This hybrid event was attended by more than 200 members, with half opting to join online. The feedback was positive:

"Sometimes you get caught up in the day-to-day and forget the industry behind us and the work that English UK does... It was good to feel part of something bigger again. There was a lot to be positive about too."

"It's good to be reminded that we are navigating the tricky way forward together, as a community with strong leadership."

To ensure the strength of our association and community for the future, in 2022 we made progress with our transformative governance review.

We established a governance task & finish group in autumn 2021 to undertake a thorough review of the association's constitution and make recommendations to the board and wider membership ahead of the 2022 AGM. The association and membership have changed significantly since the establishment of English UK in 2004. The impact of Covid-19 accelerated some existing trends and introduced new challenges. The scope of the review included questions of where power, authority and responsibility sit in the relationship between the membership and the board of trustees.

The 2022 AGM adopted amended Articles of Association proposed by the governance task & finish group. These amended Articles of Association replaced the originals written in 2004. The text was reduced by about half and simplified in places but was not significantly different to the old version.

After the AGM, a consultation opened on the English UK Rulebook. This consultation concluded in autumn 2022 with the adoption of an amended Rulebook by the English UK Board of Trustees. The amended Rulebook is clear in language and structure and is fit-for-purpose for English UK in 2022 and beyond. It also addresses important issues that were missing from the original, including diversity and representation.

This important work was led by Timothy Blake of The London School of English and fellow members of the governance task & finish group, to whom we are thankful.

We are grateful to the more than 40 members who volunteered their time to serve on our subsidiary boards and advisory panels that met regularly through 2022 to discuss critical issues, devise key strategies and advise the executive team: the Enterprises Board, Finance Panel, Professional Development Advisory Group, External Relations Advisory Group, Governance Task & Finish Group and the Antiracism Action Group. We are also grateful to the many members who lead the vital network of our ten English UK subgroups: Young Learners, Scotland, Northern Ireland, Wales, Central, East, London, North, South and South West.

#2 Influence UK policy | we will successfully influence policymakers, raise the industry’s profile and develop relationships to optimise the operating environment for UK ELT.

We are looking to access further government support to counter the devastation wrought by the pandemic while securing an operating environment to maximise recovery.

We will do this by:

• influencing government policies to create opportunities, with a focus on targeted business support for all and a supportive immigration system

• raising UK ELT’s profile and promoting the English UK brand, prioritising inclusion in tourism recovery plans in all four nations, and striving for media coverage

• growing our network of supportive parliamentarians

• collaborating, extending our network and nurturing existing relationships through work with our partners and stakeholders in Westminster, local authorities and the devolved administrations.

In 2022, we campaigned for all relevant local authorities to give rates relief to UK ELT centres, and for further post-Covid government relief and grants, aiming for parity of support for centres across the devolved administrations.

We engaged extensively with UK Visas & Immigration and the Home Office in pursuance of our Educational Oversight goals, around the issue of allowing students more flexibility in their choice of education provider under the 11-month Shortterm study visa, and work rights.

Page 8

ENGLISH UK LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Achievements and performance (continued)

We collaborated with the Tourism Industry Council in the development of a proposal for a youth group travel scheme for children to alleviate the significant problems caused by the end of freedom of movement and the ID card travel issue.

Working together with the Tourism Alliance, we published a paper calling for the extension of the Youth Mobility Scheme in certain EU countries and the lifting of caps in other markets.

We raised the profile of UK ELT and promoted the English UK brand through the involvement of our External Relations Advisory Group and the wider membership in campaigning and lobbying activities. We achieved enhanced contact with MPs, Lords and ministers via parliamentary questions, a Westminster Hall debate, and countless letters to and interventions by parliamentarians.

We achieved national media exposure on several occasions with coverage by the Guardian, Observer, CNN, BBC and the Independent.

We extended our network and nurtured our existing relationships through regular formal and informal meetings with UK Visas and Immigration and Home Office officials and representation via the All-Party Parliamentary Group for International Students, Education Sector Advisory Group, BusinessLDN and the Tourism Alliance.

#3 Sector recovery | we will successfully promote English UK and UK ELT to increase student numbers and maximise sector recovery.

We recognise that rebuilding travel confidence will take time and student supply is threatened by new immigration regulations too. But we also know we have a great story to tell, a network of trusted partners around the world and a legacy as the world’s most popular destination to learn English.

We will do this by:

• improving our market intelligence and student data, including capturing low-emission growth in developing areas such as online and blended teaching

• using these insights to identify priority markets, audiences, marketing channels, and messaging

• ensuring StudyWorld is an accessible platform where members can develop productive partnerships and showcase the excellence of UK ELT

• promoting our green values, as another reason to choose UK ELT and English UK member centres

• celebrating diversity and inclusivity in the UK and UK ELT as an important selling point and central promotional message

• collaborating with Department for Business and Trade, British Council, Study UK and UK international education sector partners, and expanding the reach of the English with Confidence campaign.

Our Quarterly Intelligence Cohort (QUIC) provides in-depth analysis of the UK ELT industry's source markets on a quarterly basis. After two years of running modified versions of the QUIC scheme due to the impact of the pandemic, we were able to revert to the scheme’s original scope in 2022. 35% of the membership participated. The QUIC reports provided time critical evidence of the industry’s gradual recovery through the year and identified emerging market trends.

To support our members with robust market intelligence, we produce an annual report looking at trends in UK ELT by student weeks, numbers and global source markets. All English UK members submit their data annually. We published the 2022 edition of this report in May 2022, analysing 2021 data from 339 member centres. This report confirmed the devastating impact of the pandemic on UK ELT. In 2021, the UK welcomed about a tenth of the English language students we had pre-Covid.

We held three successful online StudyWorld events in January, March and September 2022, priced to be accessible and affordable for as many member centres as possible. Across these three events, 239 educators met with 382 international agencies and partners from 50+ countries in thousands of pre-scheduled appointments.

In summer 2021, we launched the English with Confidence campaign, an international-facing campaign to support market recovery for the UK's English language teaching sector.

English UK is working together with the British Council and the Department for Business and Trade, to run this responsive and coordinated campaign under the globally-recognised GREAT Britain brand. The campaign informs and reassures our international partners and stakeholders, giving them the information they need to support the return of international students.

Page 9

ENGLISH UK LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Achievements and performance (continued)

The English with Confidence website (study.englishuk.com) provides a single reference point for all partners working with accredited ELT centres in the UK. Messages promote the UK as a safe and supportive environment for English language students, highlighting high standards in course quality and safeguarding, and simplifying information about Covid-19 travel and visa requirements.

In 2022 we completed the updating of the campaign to incorporate the new GREAT brand – ‘see things differently’. The new brand includes playful headlines that create intrigue, a confident, energetic and welcoming tone, unexpected images and perspectives and unusual and unexpected stories.

We connected with Study UK to improve the promotion of UK ELT on the platform and to redirect relevant traffic towards the English with Confidence website.

We worked with the British Council to revise ELT-related content on their new agent-facing website and revamped online agent training course, which had received more than 20K registrations of interest prior to its re-launch in early 2023.

After the huge success of the original PRELIM, run as a partnership between English UK, British Council and IATEFL in early 2021, the British Council secured £500,000 funding to enable twice as many countries and UK language centres to take part in 2022.

PRELIM 2 supported the development of over 2500 English language teachers through 40 individual partnerships between 35 UK language centres and 40 English Teacher Associations (ETAs) worldwide.

Each project was run independently by an accredited language centre with support from NILE to create a community of practice and facilitate the project. Through collaborative planning, each partnership created a bespoke online learning course for a targeted group of teachers appropriate to their needs and delivered within the contextual limitations and opportunities of the country of the ETA.

The courses, delivered between January and March 2022, were notable for:

• the variety of their digital solutions

• the creativity of their instructional design and

• the flexibility of their management and delivery in responding to the changing realities of the everyday experiences of the participants.

Before the end of 2022, PRELIM 3 was announced and launched. The PRELIM 3 project partnerships will run from January 2023 to March 2024. It consists of partnerships between accredited language schools and ETAs in 25 countries working together to create and disseminate bespoke classroom resources.

#4 Sector capacity | we will significantly strengthen UK ELT sector capacity through supporting the recruitment and retention of capable staff and welcoming homestay hosts.

We are a people industry. Our staff and our homestay hosts are on the frontline of delivering the learning experience, of which UK ELT is rightly proud. They are our greatest assets.

It is therefore critical to our success that we are able to recruit and retain enough appropriately qualified staff and welcoming homestay hosts.

We will remove needless barriers and ensure rewarding and inclusive working conditions for all, to make UK ELT a desirable industry in which to work and meet the demands of growth and recovery both now and in the future.

We will do this by:

• lobbying, engaging and working with our partners at the British Council, assessment bodies and TEFL qualification providers, and UK government departments to mitigate the impact of Brexit, remove obstructions and maximise opportunities for employment in UK ELT

• increasing the visibility of career prospects and benefits in our sector through communications campaigns and promoting fit-for-purpose recruitment channels, with a special focus on increasing diversity in the sector and challenging native speakerism, accentism and other barriers

• supporting members, offering professional development to staff, promoting people excellence and providing chances to network and share ideas

• ensuring English UK and the UK ELT sector has positive, fair and accountable relationships with people, from staff to supply chain

• becoming an antiracist organisation and delivering our first antiracism action plan.

Page 10

ENGLISH UK LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Achievements and performance (continued)

We recognise that as a sector we are facing a capacity challenge. There is a critical shortage of qualified teachers, nonteaching staff and homestay hosts, particularly in the peak summer season.

In 2022, we established a capacity challenge working group, inviting all stakeholders including English UK members, teaching qualification providers, awarding bodies, Accreditation UK and the Department for Business & Trade (formally International Trade) to discuss this complex issue.

We also held an open townhall style meeting for English UK member centres. Discussions at these meetings helped us identify key strategies for navigating the capacity challenge. They also helped us recognise that the reasons behind the capacity challenge are complex, and therefore the solutions will need to be multi-faceted too.

There is a need to support the sector in the short term, but also to look further down the pipeline and take a holistic approach to promoting the job opportunities in UK ELT and ensuring that the industry is a desirable place to work for all.

Through 2022, we lobbied and engaged stakeholders, working with our partners at the British Council and Accreditation UK, awarding bodies, parliamentarians, and relevant government departments. We raised and discussed issues including mitigations for those being inspected over the summer, the Shortage Occupation List, Youth Mobility Scheme, Advanced Learner Loans and the promotion of teaching qualifications.

We developed a communications plan to be rolled out in early 2023 aiming to increase the visibility of the opportunities in UK ELT, improve the pipeline and promote fit-for-purpose recruitment channels.

We supported members with ideas and advice, offering professional development and training and chances to network and share ideas.

English UK’s offer of professional development for those working in the UK ELT sector is important for promoting people excellence and strengthening sector capacity.

The DELTM (Diploma in English Language Teaching Management) is English UK’s principal diploma level qualification for academic managers, operations managers and directors at English language teaching centres. It is validated and certified by LanguageCert.

In 2022, we revitalised the DELTM with a hybrid model, revised course content and new experts joining our team of tutors. We welcomed nine participants to the course, our first cohort since 2019/20.

The CELTSEM (Certificate in ELT Student Management) is English UK’s unique course for English language teaching professionals, aimed at those working in student administration, welfare and accommodation.

The course is taught through a combination of six synchronous online sessions and self-study, with a high level of personalised support during training sessions and tutorials. It is a highly practical, task-based course, covering all aspects of student administration and management.

In 2022, we revitalised the CELTSEM with an online delivery model and revised course content. We welcomed 13 participants to the course, our first cohort since 2019/20.

We held two successful professional development conferences in 2022: the ELT Conference (hybrid) attracting 79 delegates to the academic management day (in-person) and over 180 registrations for the online teaching practice stream; and the English UK Marketing Conference (in-person) for 96 delegates.

With the return of students to our classrooms, our vital safeguarding training for staff responsible for the welfare of young learners at English UK member centres went from strength to strength. Offered online, 28 sessions attracted 422 trainees in 2022.

Over the course of 2022, we continued our programme of free webinars, offering 9 sessions to 450+ delegates.

English UK's antiracism plan ‘Becoming antiracist: promoting a fairer, more inclusive and equitable UK ELT sector’, published in July 2021, is part of our commitment to creating a fairer, safer and better industry for everyone. The plan outlines our antiracist commitment, approach, vision and strategic aims.

Page 11

ENGLISH UK LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Achievements and performance (continued)

Following the publication of this plan, two initial actions included the setting up of an antiracism action group and English UK’s first diversity and inclusion survey, the results of which were published in 2022.

The group met several times and established several objectives for 2022:

• Provide training for members and UK ELT industry. Topics proposed include dealing with incidents, raising awareness and tackling unconscious bias.

• Create guidelines for diversity in marketing which would inform the language and visuals used in our materials and be shared with members as a suggested template.

• Use the English UK platform to promote diversity by celebrating black people and people of colour within the industry, diversifying speakers and trainers at our events, making antiracism and diversity central at our conferences and using social media platforms to promote diversity within our industry.

• Facilitate a networking group for people of colour in UK ELT, enabling mentorship and networking across roles, giving the opportunity to discuss racism in the industry and get support, and ask for feedback to English UK and the antiracism action group.

#5 Strides towards sustainability | we will make significant progress towards turning UK ELT green to help protect our planet, build hope and secure our future.

English UK’s mission is to champion UK ELT and create a sector that transforms lives through learning.

This is only possible if we live and work in balance with our environment, protecting our future and equipping students with the language and skills they need to face the greatest challenge of our time.

We will do this by:

• measuring and reducing our emissions and the negative environmental impact from English UK activities and events

• measuring and reporting on the ‘carbon footprint’ of the UK ELT industry

• communicating our plans and actions clearly and persuasively, and leading the sector by example

• supporting and celebrating member climate action

• supporting and amplifying green UK ELT organisations and actors.

English UK's first environmental action plan was published in early 2022. The plan acknowledges that English UK and the UK ELT sector can and must join the international movement for climate action and help protect our planet and our future.

We will encourage and listen to feedback at every stage in our environmental work — through formal surveys and consultations, as well as welcoming thoughts and comments at any time. Input from ELT colleagues will enable us to make informed decisions, take the most appropriate action and avoid wasting resources.

We circulated an initial survey in 2022 to better understand the level of environmental and climate action in our industry. Survey findings will be shared in 2023, and an environmental action group convened.

b. 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:

The partnership with the British Council in the Accreditation UK scheme gives international students a guarantee of quality which they have no other practicable way of obtaining, since by its nature international education is an ‘experience good’, meaning that one has no way of judging its quality and appropriateness before actually going on a course, so some surrogate indicator such as accreditation is an important safeguard for students.

The information, marketing and promotional work undertaken ensures that international students and their counsellors are aware of the range of accredited centres and courses and have all the data they require to help them make an informed decision in easily accessible and searchable formats.

StudyWorld and other agent-facing activities are effective in familiarising agents with what is on offer and so helping them to counsel students fairly and accurately, leading again to better choices by international students.

Page 12

ENGLISH UK LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Achievements and performance (continued)

Financial review

a. Results for the year

A summary of the year’s results can be found on page 19 of the financial statements. Total income for the group for the year ended 31 December 2022 amounted to £801,239 (2021 - £936,234). 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 2022 totalled £894,598 (2021 - £1,009,183). 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 £93,359 (2021 – net expenditure of £72,949).

b. Financial position

A summary of the charity’s financial position as at the year-end can be found on page 20 of the financial statements. At 31 December 2022, the group held net assets totalling £1,709,153 (2021 - £1,802,512).

Of the total funds of £1,709,153 (2021 - £1,802,512) of the group at 31 December 2022, £120,198 (2021 - £106,688) 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 20). 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, £3 was utilised from the fund and an additional £13,513 was designated in the year. This fund will continue to be utilised as and when required.

A further £15,124 (2021 - £15,212) of the total fund balances at 31 December 2022 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 20).

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 £1,399,606 (2021 - £1,452,542) at 31 December 2022.

c. Reserves policy

The Trustees believe the free reserves should cover 3 months of the operational costs of association.

The free reserves of the group at 31 December 2022, which the charity defines as net current assets held within the general fund (see note 20), were £174,225 (2021 - £228,071).

This is below the desired level as indicated in the reserves policy above. The Trustees will aim to build up the group's free reserves, while at the same time recognising that there is a significant asset in the building.

We are aming to build up the group reserves over time as members recover from the pandemic:

• We are expecting 2023 student weeks to return to their pre-pandemic levels, bringing increased membership revenue and greater opportunity to recruit new members in 2024 and beyond.

• We will continue developing StudyWorld events, aiming to raise additional revenue while supporting members with their recovery.

• We have plans to bring back our successful overseas workshop events in 2023, which have generated a surplus in the past and are highly valued by members.

• We will continue developing and increasing our offer of professional training and conferences in-person and online, which bring in significant revenue year by year.

• We have plans to rent out a bank of desks in the office to raise additional income for the association while the UK ELT sector continues to recover.

Page 13

ENGLISH UK LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

d. Impact of COVID-19 and going concern

From early 2020, the coronavirus (Covid-19) outbreak spread worldwide and caused extensive disruptions to businesses as well as economic activities globally including the UK. Whilst in 2021 restrictions in the UK and the rest of the world began to ease, there still remains the risk of travel restrictions, local lockdowns and access to vaccinations which may impact the charity's operations into the future.

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 enacted procedures to facilitate this and have a detailed plan that enabled effective operations to continue whilst employees are not physically present in the charity’s offices. As restrictions have eased our employees have adopted a hybrid working policy.

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. It is not anticipated at the current time that the financial solvency of the charity will be threatened.

e. Principal risks and uncertainties

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

The principal risks to which the charity is exposed are:

• Loss of membership subscription income through members withdrawing from or losing their accreditation and/or permanent closure.

• Loss of revenue from other activities, including training, conferences and events.

• Members permanently closing their centres and needing to activate the Student Emergency Support scheme.

• Loss of staff resulting in a shortage of resources.

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.

f. Future plans

The aims outlined in our strategy to 2025 ‘Striving to do better, seizing new opportunities’ will form the foundation of our work over the next three years to 2025 - building a strong, welcoming, inclusive, responsible and sustainable industry into the second quarter of the 21st century. And returning the UK to the number one destination for English language studies.

Indications from the sector are positive. There will be bumps in the road, and the pace of recovery will not be the same for all, but we are anticipating a return to close to pre-pandemic levels of student numbers in 2023.

English UK member centres are resilient and innovative, but UK ELT is competing with one hand tied behind its back. A few simple tweaks by the government could create a level playing field between us and our global competitors.

In 2023, we will be publishing our latest position paper, ‘Help us become the world's premier ELT destination again’, making it clear how the UK government can help our sector.

We will be supporting our campaigning and lobbying with robust intelligence-based evidence gathered from our members through our annual and quarterly reporting schemes.

We will be promoting English UK and UK ELT through the ongoing English with Confidence campaign and a return to an in-person StudyWorld event in London in March 2023. This event will mark the beginning of a refreshed strategy for StudyWorld, with a renewed commitment to our brand values: accessible, innovative, high quality, sustainable, focussed and friendly. We will also return to running our in-person international activities, and hope to hold an event in China in the autumn 2023.

We will be supporting English UK members to ensure they have the capacity to welcome back students to the UK through a communications campaign. Our messages will highlight the benefits of qualifying as a TEFL teacher, working in an ELT centre and hosting international students as a homestay host.

Page 14

ENGUSH UK UMITED IA company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Guided by our valu8s, wr fuiure plans are focussed growiThJ our community, tnffuenong UK policy. promoting saetor r8COV8ry, Strengthening capaoty and 5thding towards $u$trrnability. Our aim is to rebjm th& UK to the number onè destinats'on for English language stitdies. g. Fundralslng act5v1￿¢s English UK does not activitely sdicit donations directly from the public and does not use third parties for fijndraising. Therefore It is not registered wrth the Fundraising Regulator and does not subscribe to any fvndraising code8 of practi￿. Were donation5 frorn individuals or trusts and foundations to be feceived. English UK would ensure personal data is appropriately yotected. English UK received no ¢￿plaInts wthin the year regarding fundfaisirq. Dl$¢lo$ur• ol Inlorniallon to audltor Each of the persons who ar8 Trustees at the time vknen this Trust8e$' rnport is appro￿ has confirmad that." ¥0 lar a$ tho1 Tru5teg i¥ there 15 no relevant Jdrt infornation ol whith tho tharilab18 group's auditor i¥ unaware. 8nd that Trustee has tsken •ll thg $tep¥ that oughl to have been taken as a Trust8• in order to be aware ol any relevant aurjit infofft)8tlon and to •sta￿lSh Ihat th• chi1oblg woup's aLkJitor is aware of that infomiotr0n. Approv¥d by ¢rd&r ofthtr m￿￿r$ ofthe boaTd ofTruslees and signe4J on Ih*r b¥h8lfby'. ènd•ll (Chair of Trust•8sl Date.. 19 AffiL 2013 Page 15

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 subsidiary (the 'group') for the year ended 31 December 2022 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the charity balance sheet, the consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 31 December 2022 and of the Group's income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.

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'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 Trustees' Report other than the financial statements and our Auditor's Report thereon. The Trustees are responsible for the other information contained within the Trustees' 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 16

ENGLISH UK LIMITED

(A company limited by guarantee)

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

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

• the information given in the Trustees' Report is inconsistent in any material respect with the financial statements; or

• the parent charitable company has not kept sufficient accounting records; or

• the parent charitable company financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

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

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

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 obtained an understanding of the legal and regulatory frameworks applicable to the charitable company and the sector in which it operates. We determined that the following laws and regulations were most significant: 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), the Companies Act 2006, and the Charities Act 2011.

• We understood how the charitable company is complying with those legal and regulatory frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through our review of Board minutes and papers provided to the Audit Committee.

• We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

• o Identifying and assessing the design effectiveness of controls in place to prevent and detect fraud; o Understanding how those charged with governance considered and addressed the potential for override of controls other inappropriate influence over the financial reporting process such as authorisation of expenditure; o Challenging assumptions and judgements made by management in its significant accounting estimates; o Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations; and, o Assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the relevant financial statement item to which they relate.

We did not identify any irregularities, including fraud.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are Page 17

ENGLISH UK LIMITED

(A company limited by guarantee)

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

from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the Charity's trustees, 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 Charity's trustees 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 Charity 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 130 Wood Street London EC2V 6DL

Date: 24 May 2023

Page 18

ENGLISH UK LIMITED

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022

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 2022 £ 3,033 519,959 264,956 1,235 12,056 801,239 68,540 826,058 894,598 (93,359) 1,802,512 (93,359) 1,709,153	Total funds 2022 £ 3,033 519,959 264,956 1,235 12,056 801,239 68,540 826,058 894,598 (93,359) 1,802,512 (93,359) 1,709,153	Total funds 2021 £ 74,091 588,287 244,384 59 29,413 936,234 92,102 917,081 1,009,183 (72,949) 1,875,461 (72,949) 1,802,512

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

The notes on pages 24 to 46 form part of these financial statements.

Page 19

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

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2022

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 Creditors: amounts falling due after more than one year 19 Total net assets Group funds Restricted funds 20 Unrestricted funds . Designated funds 20 . General funds 20 Total funds	150,223 722,759 872,982 (440,934)	2022 £ 15,481 1,384,124 1,399,605 112,062 679,418 791,480 (301,510) 432,048 (122,500) 1,709,153 - 1,534,928 174,225 1,709,153	2021 £ 17,475 1,435,067 1,452,542 489,970 (140,000) 1,802,512 - 1,574,441 228,071 1,802,512

The Trustees acknowledge their responsibilities for complying with the requirements of the Companies 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:

Date:

The notes on pages 24 to 46 form part of these financial statements.

M Rendell

Page 20

ENGUSH UK UMITED IA company limited by guarantee) REGISTERED NUMBER. 05120951 CHARITY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022 2022 2027 Flxtd a88•ts Intangible assets Tangibk assets Investments 14 15 16 15.481 1.384,124 17.475 1,435,067 1.399,606 1.452.543 Current a•••ts Debtors Cash at bank and in haTrJ 17 98,478 654,166 124.324 608.093 762.644 732,417 Crediiors.. amounts fallin9 dug y￿r 18 1339,0661 (260,917) Not ¢urr•nl •••¢t• 413.578 471,SOt7 Creditors.. amounts falling due after more than one year 19 1122,5001 (740,OOOJ Total ngt a•••l• 1.690.684 1, 784,043 Charlty funds Restricted funds Unr8strict8d funds 20 . Oeswnated funds G•n8r81 hJnd8 20 20 1.634,929 155,755 1,5T4,442 209,601 Total fund• 1.690.884 1,784.Q43 Charitls nèt m0￿mnt in funds forth• y•8r was £(93,3591 (2021- £f72.949)J. Th8 Tru5t8ts s￿noW1edge their r8sponsibilitie5 for c£fflplyir9 with ts wuirements of the Act with reSFeCt to accvunts.ng records and preparation of financial slatements. The financial statements have been prepared in accordance provisions applicable to ent￿e$ subj'ect to the srnall comp8nies regime. The financial ststements approd aulhorised for issue by the Tnjstsès and 5vJned on their behalf by." M Rendell (Chair of Trusteesl Date.. Iq Aofil 2013 Page 21

ENGLISH UK LIMITED

(A company limited by guarantee)

CHARITY STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 31 DECEMBER 2022

The notes on pages 24 to 46 form part of these financial statements.

Page 22

ENGLISH UK LIMITED

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

Cash flows from operating activities Net cash provided/(used in) by operating activities (note 23) Cash flows from investing activities Interest received Net cash provided by investing activities Cash flows from financing activities Cash inflows from new borrowing Repayments of borrowing Net cash (used in)/provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at 1 January 2022 Cash and cash equivalents at 31 December 2022 The notes on pages 24 to 46form part of these financial statements	2022 £ 60,982 1,235 1,235 - (18,876) (18,876) 43,341 679,418 722,759	2021 £ (77,570) 59 59 175,000 (50,000) 125,000 47,489 631,929 679,418

Page 23

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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 trading activities, subscriptions fees from members, investment income 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:

• Expenditure on raising funds includes all expenditure associated with the charity’s trading activities, principally the direct costs of hosting fairs and exhibitions, the costs of its missions and an allocation of support and governance costs.

• Expenditure on charitable activities includes the costs associated with servicing the members of English UK and includes premises and administrative costs, and an allocation of support and governance costs.

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.

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.

Page 24

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. Accounting policies (continued)

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 range as follows:

Amortisation is provided on the following basis:

Computer software - 10 - 20 % 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 the subsidiary company is valued at cost.

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.

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.

Page 25

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. Accounting policies (continued)

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.

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:

• the useful economic life attributed to the various components of tangible and intangible fixed assets;

• the provision made in respect of bad and doubtful debts; and

• the basis for determining the management charge payable by English UK Enterprises Limited to the charity.

Page 26

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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.

The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.

Page 27

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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 Annual conference and AGM Student Emergency Support Fund Member subscriptions - Basic Member subscriptions - Supplementary Member subscriptions - Corporate Other income - Annual conference and AGM Student Emergency Support Fund	Unrestricted funds 2022 £ 33 3,000 - 3,033 Unrestricted funds 2021 £ 4,041 10,357 59,693 74,091 Unrestricted funds 2022 £ 383,626 75,746 35,577 11,497 13,513 519,959 Unrestricted funds 2021 £ 448,662 72,095 36,837 9,285 21,408 588,287	Total funds 2022 £ 33 3,000 -
		3,033
		Total funds 2021 £ 4,041 10,357 59,693
		74,091
		Total funds 2022 £ 383,626 75,746 35,577 11,497 13,513
		519,959
		Total funds 2021 £ 448,662 72,095 36,837 9,285 21,408
		588,287

3. Income from charitable activities

Page 28

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

3. Income from charitable activities (continued)

4. Income from other trading activities

Income from non charitable trading activities

StudyWorld London Professional training and qualifications Intelligence Promotions StudyWorld London Professional training and qualifications Intelligence Promotions	Unrestricted funds 2022 £ 89,793 147,853 13,360 13,950 264,956 Unrestricted funds 2021 £ 146,121 82,448 8,315 7,500 244,384	Total funds 2022 £ 89,793 147,853 13,360 13,950
		264,956
		Total funds 2021 £ 146,121 82,448 8,315 7,500
		244,384

5. Investment income

Interest received Interest received	Unrestricted funds 2022 £ 1,235 Unrestricted funds 2021 £ 59	Total funds 2022 £ 1,235
		Total funds 2021 £ 59

Page 29

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

6. Other income

VAT reclaim Insurance commission VAT reclaim Insurance commission	Unrestricted funds 2022 £ 10,506 1,550 12,056 Unrestricted funds 2021 £ 27,671 1,742 29,413	Total funds 2022 £ 10,506 1,550
		12,056
		Total funds 2021 £ 27,671 1,742
		29,413

Page 30

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

7. Expenditure on raising funds

StudyWorld London Intelligence Administration costs Support and governance (note 9) StudyWorld London Intelligence Administration costs Support and governance (note 9)	Unrestricted funds 2022 £ 25,175 22,466 19,960 939 68,540 Unrestricted funds 2021 £ 61,074 11,610 17,944 1,474 92,102	Total funds 2022 £ 25,175 22,466 19,960 939
		68,540
		Total funds 2021 £ 61,074 11,610 17,944 1,474
		92,102

Page 31

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

8. Expenditure on charitable activities

Servicing members Staff costs and recruitment General promotion and intelligence Premises Public affairs Administration Depreciation and amortisation Annual conference and AGM Training and qualifications Student Emergency Support Fund costs Eddie Byers Scholarship Support and governance costs (note 9)	Unrestricted funds 2022 £ 498,536 21,987 24,146 40,753 74,487 52,936 20,336 78,038 3 120 14,716 826,058	Total funds 2022 £ 498,536 21,987 24,146 40,753 74,487 52,936 20,336 78,038 3 120 14,716
		826,058

Servicing members Staff costs and recruitment General promotion and intelligence Premises Public affairs Administration Depreciation and amortisation Annual conference and AGM Training and qualifications Student Emergency Support Fund costs Eddie Byers Scholarship Support and governance costs (note 9)	Unrestricted funds 2021 £ 592,650 39,945 27,457 54,464 74,312 55,245 11,218 38,085 499 120 23,086 917,081	Total funds 2021 £ 592,650 39,945 27,457 54,464 74,312 55,245 11,218 38,085 499 120 23,086
		917,081

Page 32

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

9. Support and governance costs

	Unrestricted funds	Total funds
	2022	2022
	£	£
Auditor's remuneration
-Statutory audit services	10,725	10,725
-Other services	3,315	3,315
Professional fees	50	50
Board and sub-committee expenses	1,565	1,565
	15,655	15,655
Attributed to:
Expenditure on raising funds	939	939
Expenditure on charitable activities	14,716	14,716
	15,655	15,655
	Unrestricted funds	Total funds
	2021	2021
	£	£
Auditor's remuneration
-Statutory audit services	10,200	10,200
-Other services	6,216	6,216
Professional fees	33	33
Board and sub-committee expenses	8,111	8,111
	24,560	24,560
Attributed to:
Expenditure on raising funds	1,474	1,474
Expenditure on charitable activities	23,086	23,086
	24,560	24,560

10. Staff costs

Wages and salaries Social security costs Contribution to defined contribution pension schemes Other employee benefits	Group 2022 £ 414,092 33,052 43,574 7,818 498,536	Group 2021 £ 479,103 43,668 54,359 15,520 592,650	Charity 2022 £ 414,092 33,052 43,574 7,818 498,536	Charity 2021 £ 479,103 43,668 54,359 15,520
				592,650

Page 33

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

10. Staff costs (continued)

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

Group 2022 No. Employees 11 The average headcount expressed as full-time equivalents was: Group 2022 No. Employees 9.28	Group 2021 No. 12 Group 2021 No. 9.28	Charity 2022 No. 11 Charity 2022 No. 9.28	Charity 2021 No. 12
			Charity 2021 No. 9.28

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

		Group	Group
		2022	2021
		No.	No.
In the band £60,001	- £70,000	2	1
In the band £70,001	- £80,000	-	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 £204,429 (2021 - £242,470).

11. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .

During the year ended 31 December 2022, out of pocket travelling expenses totalling £ 614 were reimbursed or paid directly to 5 Trustees (2021 - £612 to 7 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 £1,049 (2021 - £1,866), providing cover up to a maximum of £1,000,000 (2021 - £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 34

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

13. Net expenditure

This is stated after charging:

	2022	2021
	£	£
Staff costs (note 10)	498,536	592,650
Auditor's remuneration - English UK
- Statutory audit fees	10,725	10,200
- Other services	3,315	6,216
Auditor's remuneration - English UK Enterprises Limited
- Statutory audit fees	3,465	3,690
- Other services	5,075	2,140
Depreciation	50,943	52,962
Amortisation	1,994	2,283
Operating lease charges	2,385	2,385

14. Intangible assets Group and Charity Cost At 1 January 2022 At 31 December 2022 Amortisation At 1 January 2022 Charge for the year At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021	Computer software £ 34,877
	34,877
	17,402 1,994
	19,396
	15,481
	17,475

Page 35

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

15. Tangible fixed assets

Group and Charity

Cost or valuation At 1 January 2022 At 31 December 2022 Depreciation At 1 January 2022 Charge for the year At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021	Long-term leasehold property £ 1,373,762 1,373,762 89,295 27,475 116,770 1,256,992 1,284,467	Building improve- ments £ 174,882 174,882 53,642 17,488 71,130 103,752 121,240	Fixtures and fittings £ 28,580 28,580 16,808 2,943 19,751 8,829 11,772	Computer equipment £ 28,408 28,408 10,820 3,037 13,857 14,551 17,588	Total £ 1,605,632
					1,605,632
					170,565 50,943
					221,508
					1,384,124
					1,435,067

Page 36

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

16. Fixed asset investments

Charity Cost or valuation At 1 January 2022 At 31 December 2022	Investment in subsidiary company £ 1
	1

Principal subsidiaries

The following was a subsidiary undertaking of the Charity:

Name	Company	Registered office or principal	Class of
	number	place of business	shares
English UK Enterprises Limited	05200973	Flag House, 47 Brunswick Court,	Ordinary
		London, SE1 3LH

Holding

100%

The financial results of the subsidiary for the year were:

Name English UK Enterprises Limited 17. Debtors Due within one year Trade debtors Amounts owed by group undertakings Other debtors Prepayments and accrued income	Group 2022 £ 56,870 - 9,000 84,353 150,223	Income £ Expenditure £ 89,946 89,946 Group Charity 2021 2022 £ £ 40,570 32,909 - 15,790 9,000 9,000 62,492 40,779 112,062 98,478	Net assets £ 18,469 Charity 2021 £ 36,976 20,681 9,000 57,667
			124,324

Page 37

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

18. Creditors: Amounts falling due within one year

Bank loans Trade creditors Other taxation and social security Other creditors Accruals and deferred income	Group 2022 £ 35,000 141,406 35,155 18,878 210,495 440,934	Group 2021 £ 35,000 80,733 50,905 45,768 89,104 301,510	Charity 2022 £ 35,000 141,344 35,155 18,878 108,689 339,066	Charity 2021 £ 35,000 77,339 50,905 45,768 51,905
				260,917

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 Government 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. This loan was fully repaid by 31 December 2021.

A Coronavirus Business Interruption Loan (CBIL) of £175,000 was taken out in May 2021 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 Coronavirus Business Interruption Loan Scheme (CBILS) 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 Government 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 2.38% fixed rate. The loan is paid in monthly capital repayments of £2,917 and interest is paid quarterly. The first repayment was made in July 2022. The fixed rate was agreed for the first 60 months of the loan and for the last 12 months, then 1.75% p.a. over Base Rate will apply unless a new agreement is agreed with the bank.

Deferred income in the main includes income received in advance for the StudyWorld event and other fairs which will take place during 2023.

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

Deferred income at 1 January 2022 Resources deferred during the year Amounts released from previous periods Deferred income at 31 December 2022	Group 2022 £ 48,563 153,033 (48,563) 153,033	Group 2021 £ 136,460 48,563 (136,460) 48,563	Charity 2022 £ 17,865 58,052 (17,865) 58,052	Charity 2021 £ 62,975 17,865 (62,975)
				17,865

Page 38

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

19. Creditors: Amounts falling due after more than one year

Bank loans	Group 2022 £ 122,500 122,500	Group 2021 £ 140,000 140,000	Charity 2022 £ 122,500 122,500	Charity 2021 £ 140,000
				140,000

A Coronavirus Business Interruption Loan (CBIL) of £175,000 was taken in May 2021 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 Coronavirus Business Interruption Loan Scheme (CBILS) 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 Government 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 2.38% fixed rate. The loan is paid in monthly capital repayments of £2,917 and interest is paid quarterly. The first repayment was made in July 2022. The fixed rate was agreed for the first 60 months of the loan and for the last 12 months, then 1.75% p.a. over Base Rate will apply unless a new agreement is agreed with the bank.

Included within the above are amounts falling due as follows:

Between one and two years Bank loans Between two and five years Bank loans	Group 2022 £ 35,000 87,500	Group 2021 £ 35,000 105,000	Charity 2022 £ 35,000 87,500	Charity 2021 £ 35,000 105,000

Page 39

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

20. Statement of funds

Group statement of funds - 2022 Unrestricted funds Designated funds Student Emergency Support Fund Eddie Byers Scholarship Fixed asset fund General funds General fund Total funds	Balance at 1 January 2022 £ 106,688 15,211 1,452,542 1,574,441 228,071 1,802,512	Income £ 13,513 33 - 13,546 787,693 801,239	Expenditure £ (3) (120) (52,936) (53,059) (841,539) (894,598)	Balance at 31 December 2022 £ 120,198 15,124 1,399,606
				1,534,928
				174,225
				1,709,153

Page 40

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

20. Statement of funds (continued)

Group statement of funds - 2021

Unrestricted funds Designated funds Student Emergency Support Fund Eddie Byers Scholarship Fixed asset fund General funds General fund Total Unrestricted funds	Balance at 1 January 2021 £ 85,779 11,291 1,507,787 1,604,857 270,604 1,875,461	Income £ 21,408 4,041 - 25,449 910,785 936,234	Expenditure £ (499) (120) (55,245) (55,864) (953,319) (1,009,183)	Balance at 31 December 2021 £ 106,688 15,212 1,452,542
				1,574,442
				228,070
				1,802,512

Page 41

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

20. Statement of funds (continued)

Charity statement of funds - 2022

	Balance at 1 January 2022	Income	Expenditure	Transfers in/out	Balance at 31 December 2022
	£	£	£	£	£
Unrestricted funds
Designated funds
Student Emergency Support Fund	106,688	13,513	(3)	-	120,198
Eddie Byers Scholarship Fund	15,212	33	(120)	-	15,125
Fixed Asset Fund	1,452,542	-	(52,936)	-	1,399,606
	1,574,442	13,546	(53,059)	-	1,534,929
General funds
General fund	209,601	751,221	(805,067)	-	155,755
Total Unrestricted funds	1,784,043	764,767	(858,126)	-	1,690,684

Page 42

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

20. Statement of funds (continued)

Charity statement of funds - 2021

Balance at 1 January 2021	Balance at 1 January 2021	Income	Expenditure	Transfers in/out Balance at 31 December 2021	Transfers in/out Balance at 31 December 2021
	£	£	£	£	£
Unrestricted funds
Designated funds
Student Emergency Support Fund	85,779	21,408	(499)	-	106,688
Eddie Byers Scholarship Fund	11,291	4,041	(120)	-	15,212
Fixed Asset Fund	1,507,787	-	(55,245)	-	1,452,542
	1,604,857	25,449	(55,864)	-	1,574,442
General funds
General fund	252,135	849,670	(892,204)	-	209,601
Total Unrestricted funds	1,856,992	875,119	(948,068)	-	1,784,043
Restricted funds

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.

21. Group analysis of net assets between funds

Group analysis of net assets between funds - 2022

Tangible fixed assets Intangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Total	Unrestricted funds 2022 £ 1,384,124 15,481 872,982 (440,934) (122,500) 1,709,153	Total funds 2022 £ 1,384,124 15,481 872,982 (440,934) (122,500)
		1,709,153

Page 43

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

21. Group analysis of net assets between funds (continued)

Group analysis of net assets between funds - 2021

Tangible fixed assets Intangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Total	Unrestricted funds 2021 £ 1,435,067 17,475 791,480 (301,510) (140,000) 1,802,512	Total funds 2021 £ 1,435,067 17,475 791,480 (301,510) (140,000) 1,802,512

22. Charity analysis of net assets between funds

Charity analysis of net assets between funds - 2022 Intangible assets Tangible fixed assets Investments Current assets Creditors due within one year Creditors due after one year Charity analysis of net assets between funds - 2021 Intangible assets Tangible fixed assets Investments Current assets Creditors due within one year Creditors due after one year	Unrestricted funds 2022 £ 15,481 1,384,124 1 752,969 (339,066) (122,500) 1,691,009 Unrestricted funds 2021 £ 17,475 1,435,067 1 732,417 (260,917) (140,000) 1,784,043	Total funds 2022 £ 15,481 1,384,124 1 752,969 (339,066) (122,500) 1,691,009 Total funds 2021 £ 17,475 1,435,067 1 732,417 (260,917) (140,000) 1,784,043

Page 44

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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

Net expenditure for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Amortisation charges Dividends, interests and rents from investments (Increase)/decrease in debtors (Decrease) in creditors Net cash provided/(used in) by operating activities 24. Analysis of cash and cash equivalents Cash at bank and in hand Total cash and cash equivalents 25. Analysis of changes in net debt At 1 January 2022 £ Cash at bank and in hand 679,418 Loan due within one year (35,000) Loan due after one year (140,000) 504,418		Group 2022 £ (93,359) 50,943 1,994 (1,235) (18,634) 121,273 60,982 Group 2022 £ 722,759 722,759 Cash flows £ 43,341 - 17,500 60,841		Group 2021 £ (72,949) 52,962 2,283 (59) 116,513 (176,320) (77,570) Group 2021 £ 679,418 679,418 At 31 December 2022 £ 722,759 (35,000) (122,500) 565,259

Page 45

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

26. Operating lease commitments

At 31 December 2022 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 2022 £ 1,469 - 1,469	Group 2021 £ 1,958 1,469 3,427	Charity 2022 £ 1,469 - 1,469	Charity 2021 £ 1,958 1,469
				3,427

27. Related party transactions

All trustees of English UK Limited are employed by organisations who are members of English UK. Aside from those transactions described in note 11, there are no further related party transactions to report.

Trustees and senior management of English UK Limited are required to declare all interests every year.

Interests for disclosure include renumeration, directorships, significant shareholdings, unremunerated activities pursuing activities related to those of English UK Ltd/ English UK Enterprises Ltd and family interests.

Page 46

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

. Appendix - Charity income and expenditure

	Total funds	Total funds
	2022	2021
	£	£
Basic subscriptions	383,626	448,662
Supplementary subscriptions	75,746	72,095
Total subscription income	459,372	520,757
Corporate member subscriptions	35,577	36,837
Net corporate membership income	35,577	36,837
Annual conference and AGM income	11,497	9,285
Annual conference and AGM expenditure	(20,336)	(11,218)
Net annual conference and AGM income	(8,839)	(1,933)
Project QUIC income	13,360	8,315
Project QUIC expenditure	(13,886)	(11,610)
Net Project QUIC income	(526)	(3,295)
Training and qualifications income	147,853	82,448
Training and qualifications expenditure	(78,038)	(38,434)
Net training and qualifications income	69,815	44,014
Student emergency support fund income	13,513	21,408
Student emergency support fund expenditure	(3)	(499)
Net student emergency support fund income	13,510	20,909
Eddie Byers scholarship income	33	4,041
Eddie Byers scholarship expenditure	(120)	(120)
Net Eddie Byers scholarship income	(87)	3,921
Market Insights income	35,400	-
Market Insights expenditure	(34,000)	-
Net Market Insights income	1,400	-
Membership expenditure	(2,788)	-
Net membership income	(2,788)	-
Intelligence expenditure	(7,781)	-
Net Intelligence income	(7,781)	-

Other income

53,149

57,136

English UK Enterprises Management charge

Page 47

ENGLISH UK LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Interest receivable	1,082	51
VAT reclaim	10,506	27,671
Coronavirus Job Recovery Scheme income	-	59,693
Other sundry income	15,026	9,241
Discretionary grant fund income	3,000	10,357
Gift aid income	-	18,878
	82,763	183,027
Other expenditure
Staff costs and recruitment	(498,536)	(592,650)
General promotion and intelligence	(23,387)	(39,945)
Premises	(24,146)	(27,457)
Public affairs	(40,753)	(54,464)
Administration	(65,970)	(63,947)
Irrecoverable VAT and Capital Goods Scheme	(10,615)	(12,643)
Depreciation and amortisation	(52,936)	(55,245)
Auditor's remuneration	(13,940)	(16,402)
Professional fees	(49)	(48)
Board and sub-committee fees	(1,565)	(8,111)
Bad debt provision	(3,878)	(6,274)
	(735,775)	(877,186)
Total income	763,791	829,281
Total expenditure	(857,150)	(902,230)
Net expenditure)	(93,359)	(72,949)
Fund balances at 1 January	1,784,043	1,856,992
Fund balances at 31 December	1,690,684	1,784,043

Page 48