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2024-12-31-accounts

Company Registration Number: 04238862 Charity Registration Number: 1133396

Centre for Engineering and Manufacturing Excellence Limited

Annual Report and Accounts

for the year ended

31 December 2024

Centre for Engineering and Manufacturing Excellence Limited Annual Report and Accounts

Contents Page
Chair and Chief Excecutive's outlook 3
Legal And Administrative Information 5
Report of the Trustees 6
Statement of Trustees’ responsibilities 14
Independent Auditors’ Report 15
Consolidated Statement of Financial Activities 18
Charity and Group Balance sheets 19
Consolidated Cash Flow Statement 20
Notes to the financial statements 21

2

Centre for Engineering and Manufacturing Excellence Limited Chair and Chief Executive’s outlook

CEME is in year two of its new and progressive strategy (2023-28), and many positive strides have been made during the 2024 year under review. In order to promote and enhance our charitable objectives, we have continued to explore opportunities and strategic partnerships in a rapidly changing, and often uncertain, socio- economic and political environment.

CEME has been accepted for a grant application of £73M from Donor Advised Fund, the dedicated fund will be secured once the deposit of £15M is paid. The funds will be used over a period of 10 years on various project from Greens Skills Development, Sustainable Construction & Retrofitting, Clean Energy Innovations, Economic Growth & Local Entrepreneurship and Sustainable Transport Solutions.

CEME’s profile and reputation in the local community and beyond has been heightened as we have engaged with major industrial and academic stakeholders, not least in the Green Tech arena where we have been instrumental as a ‘change maker’ organisation in applying for significant external investment funding.

CEME’s forward strategy is bold, ambitious and seeks to position the organisation as a community asset that can act as a catalyst for economic well-being and prosperity. We seek to achieve this through supporting business growth (particularly in Green Tech), skills development and working with partners to promote economic regeneration in themes that are important to the region. We have three main Strategic Priorities:

Whilst we are now acknowledged as a valuable ‘facilitator and connector’ within the region, the outcomes of these ambitions will take time to reach fruition. CEME’s greatest challenges remain the requirement for investment funding, and recruiting expertise in the circular economy, green tech skills and innovation.

Our core business is robust, with over 90% occupancy rates amongst our tenant community. In response to the strong demand for new facilities, in early 2025, we will create thirty-five new, fit-for-purpose workspaces. In September 2024, we were delighted to welcome Barclays Bank who established one of their ‘Eagle Labs’ within the main campus, providing free financial advice and guidance to our clients as part of CEME’s contribution to the re-generation of the local economy.

CEME’s Business Growth Academy (BGA) with over 1,300 members has become recognised as an established and flourishing initiative for learning and business growth and development. All our BGA activities are free at the point of delivery, and we fund 90% of the costs from our core budget.

Our Skills for Growth project for SEGRO, combined with our own projects, have enabled CEME to deliver just over £2m Social Return On Investment (independently measured using the Thrive system).

As part of our commitment to the creation of an Environment Social Governance (ESG) Policy, CEME has prioritised the evolution of a sustainability strategy and action plan to be completed in 2025 and we are investigating relevant ISO accreditations linked to the delivery of Sustainability Goals SDGs.

During the year, our Solar Array panels were completely replaced at a cost of £800k providing 727MW for the first year and 20,175MW over the period of 30 years. The solar Array is expected to reduce CEME's Electricity charges by £180k in the first full year of operation, and £1,380k over the long term, reducing our Carbon emission by 3,380 tonnes over the array's life time.

We want to give a special thank you to our Trustees : Judith Armitt, Findlay Macalpine and Barak Moaz, that have left CEME after many years of help and support.

3

We were pleased to see several new Trustees join the Board last year, including Ian Fitzgerald, Eman MartinVignerte, Rajeev Verma,Simon Theobald and Gavin Cooper bringing with them a rich range of skills and experience to guide CEME’s strategic vision.

Last but not least during 2024 CEME was independently accredited as a Great Place to Work. Whilst we are proud of this achievement, we continue to become even better.

Valerie E. Le Vaillant

Valerie Ellen Le Vaillant OBE, Chair Date: 7th July 2025

Dr Noorzaman Rashid, Chief Executive Date: )th July 2025

4

Centre for Engineering and Manufacturing Excellence Limited Legal And Administrative Information

BOARD OF TRUSTEES

Name

Valerie Ellen Le Vaillant (Chair) Noorzaman Rashid (Chief Executive Officer) Benyoucef Houheche (Finance Director) Ian Philip Fitzpatrick Richard Kingsley Hutchins Geoffrey Richman Judith Armitt Findlay Macalpine Barak Maoz Neil Andrew Stubbings Alessandro Attanasio Gavin Michael Ronald Cooper Eman Martin Vignerte Simon David James Theobald Rajeev Verma

Changes since last audited accounts

Resigned 30/04/2024 Resigned 18/10/2024 Resigned 30/04/2024

Appointed 01/05/2024 Appointed 01/04/2024 Appointed 03/05/2024 Appointed 01/05/2024

Organisation Represented

Ford Motor Company

London Borough of Havering Ford Motor Company Ford Motor Company

SECRETARY

Michael Wood

REGISTERED AND PRINCIPAL OFFICE

CEME Campus Marsh Way Rainham, Essex RM13 8EU

COMPANY NUMBER

04238862 (England and Wales)

CHARITY REGISTRATION NUMBER

1133396 (England and Wales)

AUDITORS

HaysMac LLP 10 Queen Street Place London EC4R 1AG

BANKERS

Barclays Bank Plc 1 Churchill Place London E14 5HP

SOLICITORS

Forsters LLP 31 Hill Street London W1J 5LS

5

Centre for Engineering and Manufacturing Excellence Limited

Report of the Trustees

The Trustees of the Centre for Engineering and Manufacturing Excellence Limited (hereafter known as CEME Limited) are, under Charity Law, the Charity’s Trustees and Directors of the charitable company.

The Trustees of CEME Limited present their Annual Report and Directors’ Report for the year ended 31 December 2024 in accordance with the provisions of the Charities Act 2011 and the Companies Act 2006, together with the audited Financial Statements for th year.

Charitable Objects

The objects for which the company is established (“the objects”) are the promotion for the public benefit of urban or rural regeneration in selected areas of social and economic deprivation in the Boroughs of Tower Hamlets, Hackney, Newham, Greenwich, Bexley, Barking & Dagenham, Havering, Thurrock, Waltham Forest, Redbridge, Lewisham, Enfield, Haringey and Dartford (together the "boroughs").

Review of Strategic Aims and Key Objective

CEME is committed to creating economic prosperity and social well-being in the sectors and communities it serves, by creating an innovative environment in which business growth is accelerated (particularly in the Green Tech arena); encouraging new employment opportunities and facilitating education, training and development activities for local stakeholders.

During the year under review, CEME has continued to develop existing industry, public sector and education partnerships, and has forged several new ones related to the green economy. We work with partner organisations to deliver a service that, through experience, we know supports increased business success and growth for our clients.CEME provides the local community with office and lab spaces, machine workshops, prototyping facilities, in addition to business and funding skills and apprenticeship opportunities.

As part of our core values, we are committed to providing the very best inspirational service in terms of training and skills and business growth development.

CEME Values : Inspiring. Inclusive. Innovative. Open and Honest.

CEME has the aspiration and ambition to act as a catalyst for economic regeneration, to be an accelerator for Green Tech and to continue to champion inclusive business growth. We have adopted new values to help drive behaviours and attitudes, designed to position CEME to be more engaging with its communities and local stakeholder organisations with similar aspirations.

CEME is more than an inspirational environment for business and learning – it is a dynamic contributor to business growth helping businesses based at CEME to grow faster than the national average. The creation of our Business Growth Academy (BGA) has further developed during the year, with 1300 participants benefiting from the added value which CEME can provide to entrepreneurs, start-ups and innovative businesses.

By working with organisations such as the Thames Estuary Growth Board, Thames Freeport and Local London we are in an optimal position to help our business community benefit from regional regeneration and the economic infrastructure delivered by these organisations and Green Tech initiatives, including the evolving hydrogen energy ecosystem.

CEME’s business campus has been chosen as the preferred site for a £29m development for a Hydrogen Living Lab enabling us to act as a catalyst for economic regeneration, skills development and job creation. We look forward to working with partners to realise this opportunity.

6

Centre for Engineering and Manufacturing Excellence Limited

Report of the Trustees

Overview

Since its inception in 2003, CEME has continued to deliver a positive economic impact in East London and the wider Thames Estuary area. We bring together employers, educators, skills, and training organisations in a unique and effective way, delivering faster and more ambitious business growth, and providing upskilling and training of local stakeholders. Our aim is for companies to grow faster, on and off the campus, and for local residents to benefit and participate in this growth, as employees, business owners and as customers and suppliers of CEME.

Skillnet have been running the Ford Motor Company Apprenticeship Programme from CEME for 10 years, utilising a number of the engineering workshop and classroom facilities to deliver the training scheme. From September 2025, this programme will be ending and CEME is investing £1.5m to create thirty-five new, fit-forpurpose workspaces to be made available to local businesses.

Public Benefit

CEME’s Board of Trustees regularly monitor and review the success of the organisation in achieving its aim to create faster enterprise growth leading to increased levels of employment in the communities it serves.

The Trustees confirm that they adhere, observe and monitor the guidance as published by the Charity Commission under section 4 of the Charities Act 2011 when reviewing the charity’s aims and objectives in planning future activities.

The Trustees confirm, in the light of the guidance, that these aims fully meet the applicable public benefit tests, and that the activities of the Charity, described in this report under four specific aims, are undertaken in pursuit of those aims.

The Trustees have reviewed the charitable activities set out within the RR2 activities under the Promotion of Urban and Rural Regeneration for public benefit in areas of social and economic deprivation, as recognised by the Charity Commission.

What CEME does

On its East London campus CEME offers good quality, high specification accommodation for training solutions providers. In addition to technical classrooms and facilities, CEME provides its customers with extensive engineering and technical workshops and labs equipped with a range of engineering and product design, test and development equipment.

CEME also operates an Innovation Centre and a Launchpad start up centre on the campus (under a lease provided by the GLA), providing high-quality office and workshop space to support early-stage growth and start-up businesses.CEME aims to provide these customers with a one-stop shop for business support services and advice, all aimed at accelerating growth. During the year, Barclays Bank established one of its ‘Eagle Hubs’ at the main campus, providing free advice and guidance to CEME clients which has been greatly welcomed by the businesses concerned.

The Launchpad Centre is aimed at supporting start-ups and very early-stage growth organisations. This offer includes co-working, hot desk, fixed desk and small office spaces to let for customers. Our aim is to remove barriers to encourage more start-ups to maximise opportunities to the fullest extent. The Launchpad customers also benefit from a tailored business programme to support accelerated growth.

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Centre for Engineering and Manufacturing Excellence Limited

Report of the Trustees

CEME’s dedicated Event space is a contemporary venue offering innovative and flexible solutions for meetings requirements from a high-tech conference auditorium, the CEME POD theatre to small meeting/training rooms, conference, exhibition and outdoor space. The flexibility and adaptability of the space offering is attractive both to existing and new clients, in addition to their dedicated work spaces.

Our mix of private and public sector activities serves to create an outstanding offer for the local community. CEME works with a range of schools, Further Education Colleges and Universities in a variety of ways all aimed at improving the opportunities and aspirations of the local communities which CEME serves.

The Gateway to Skills programme continues to serve the needs of local schools. In 2014, CEME established Elutec, a University Technical College (UTC) in partnership with University College London (UCL) and Ford and we welcome students onto the campus for work experience and placements every year.

In addition to the 100 plus businesses operating on the campus, a diverse mix of business delegates regularly attend training and seminars in the Event Space as part of our Business Growth Academy.

Achievements and Performance

Aim 1: Provide education, training and re-training opportunities and work experience

Education

The London School of Academics (LSA), an award-winning provider of teacher training education, continues to flourish at CEME. LSA growth plans have now developed such that plans are underway to register for university status. LSA is particularly active in providing teaching career training leading to high quality employment opportunities for course participants, many of whom come to the programmes unemployed.

Apprenticeships

CEME is home to the Ford Motor Company engineering apprentice programme (FAP), which enjoyed another very successful year. As mentioned above, this programme will end in September 2025 and an innovative plan is in place to transform the current space for the benefit of the local community.

Technical Training

During the year CEME hosted a wide range of technical training in its workshops and practical classrooms including Integrated Manufacturing Skills, multiskilling (electrical for mechanical and mechanical for electrical), electronics modules, welding, programmable logic control programming and testing and engineering health and safety.

Aim 2: Help unemployed people find employment

CEME continues to host assessment centres for the recruitment of a variety of employment opportunities including apprentices, entry level technical and safety training/certification for sectors such as the construction and rail, newly qualified teachers, medical staff and a host of other employment activities.

Aim 3: Provide support to businesses where it leads to training and employment opportunities for

The CEME Innovation Centre provides office and workshop space and related services to SMEs on flexible terms that enable them to take up accommodation without the risk of prohibitive lease payments should they suffer a financial downturn. In addition, a wide range of business support services is provided to support accelerated growth.

During 2024, the Innovation Centre continued to support small businesses by providing office space and tailored business support to over 50 companies, an increase from 40 in 2023. Throughout the year, the Centre maintained an impressive average occupancy rate of over 95%, up from 90% in the previous year. As in past years, several tenants experienced significant growth, eventually outgrowing the Innovation Centre and expanding their operations.

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Centre for Engineering and Manufacturing Excellence Limited

Report of the Trustees

The Launchpad building is designed to support early-stage businesses by providing flexible workspace solutions tailored to their needs, including virtual offices, hot-desking, and small office spaces. In 2024, we welcomed three new small businesses, added 12 virtual office clients, and secured four new hot-desk or fixed-desk rentals, further enhancing our support for growing enterprises.

Aim 4: Provide land and buildings on favourable terms to businesses in order to create training and employment opportunities for unemployed people

The Innovation Centre provides a valuable resource to local businesses and entrepreneurs. The Centre provides high-quality accommodation and support services on a simple ‘the price you see is the price you pay’ model offering to start-up businesses with an affordable and low risk accommodation solution.

This highly attractive offering continues to meet strong demand, maintaining occupancy levels above 95% throughout the year. In response to growing customer needs, additional units were introduced in 2024. Looking ahead, we are planning the development of a Green Tech Hub (GTH), which will provide additional units in 2025 to support the increasing demand for small business spaces while fostering sustainable and innovative enterprises in the local area.

For businesses that are not yet ready for a physical office, CEME offers a ‘virtual tenancy’ service. This provides companies with a professional front desk presence at the Innovation Centre, along with access to meeting rooms. Throughout the year, this service has supported numerous local micro-businesses, enabling them to establish a credible business presence. Currently, CEME is home to over 60 virtual businesses, reflecting the strong demand for flexible workspace solutions.

CEME FUTURE STRATEGY

During 2024, CEME further developed its strategy for growth, working with a range of industry and academic partners in applying for external funding, including bids related to developing a hydrogen living lab on the campus in partnership with the UCL and MTC. Discussions have been held with Thames Freeport to explore ways in which CEME can act as a facilitator hub in the wider Thames Estuary in collaboration with partners.

CEME’s ‘Gateway to Skills’ programme resumed in 2024, with over 1,000 secondary school students coming on campus to learn about STEM (Science, Technology , Engineering , Mathematics) subjects and to encourage students to consider careers within these subjects.

At CEME we work in partnership with regional and local government, local and national or international employers and private developers to understand the local economic landscape and regeneration aims and needs. Using the influential capital of commerce, the social capital of local government and the physical capital of supportive places, our aim is to facilitate partnerships that will deliver sustainable projects designed to meet the specific ambitions of our local communities.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Financial Statements for the year ending 31 December 2024 comply with current statutory requirements, the Memorandum and Articles of Association and the Charities SORP FRS102.

Centre for Engineering and Manufacturing Excellence Limited (trading as CEME”) is constituted as a company limited by guarantee (registration number 04238862) and is governed by its Memorandum and Articles of Association CEME was registered as a charity (registration number 1133396) in December 2009.

CEME Enterprise Limited, a registered company (number 7115923) incorporated on 5 January 2010 as a whollyowned subsidiary of CEME Limited was made non trading on 31December 2023.

The charity had no fundraising activities requiring disclosure under S162A of the Charities Act 2011.

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Centre for Engineering and Manufacturing Excellence Limited

Report of the Trustees

Board of Trustees

The Board of Trustees, who are also Directors of the charity for the purposes of the Companies Act, have overall responsibility for the direction, management and control of the charity. As discussed below, some of these activities are delegated to sub-committees of the Board. Overall, operational management of CEME is delegated to the Excecutive Officers.

The Board is subject to a maximum of 12 and a minimum of 8 directors. Under the articles of association, the composition of the board is as follows:

o Non-executive directors as required to provide expert advice on subject areas of relevance to CEME such as skills and education, business development, regeneration initiatives, manufacturing, engineering and technology to the Board.

A Non-Executive Director may hold office for an initial period of three years, renewable on a mutually agreed basis.

Typically, the Board meets on four to six occasions per year. New Directors are inducted through a formal induction process, which includes a comprehensive briefing with the Chief Executive Officer and a site visit, in addition to a number of other initiatives and in person and online governance training.

The Trustees review and monitor the financial performance of the Charity; foreseeable significant events and risks are analysed and their possible financial impact is investigated with corrective action being taken, as necessary.

Throughout the year, the Trustees continued to monitor the effectiveness and overall terms of reference of its subcommittees, to ensure adherence to best governance practice in the sector.

The Board appoints members of the Audit Committee, Nominations Committee and the Remuneration Committee. The Audit Committee (which usually meets at least three times a year) and the Remuneration Committee, comprise Trustees with relevant skills and experience.

The Remuneration Committee supports the Board in reviewing and setting the remuneration of the Executive Directors. The remuneration procedure is discharged by the Chair. The Nomination Committee reviews candidates for the appointment to the Board making recommendations for the Board’s consideration and approval.

CEME’s approach to remuneration is designed to ensure it attracts and retains the talented and motivated people we need to achieve our vision and deliver our strategic goals. It is applied consistently across the organisation. We aim to pay fair and competitively in the not-for-profit sector, within the context of affordability and considering the complexity of each role.

CEME links pay to performance and provides salary progression for those who deliver exceptional performance. The level of remuneration is benchmarked to organisations in the area of similar size type and complexity. External independent consultants carry out benchmarking on a regular basis, The Chief Executive and the Board, as appropriate, then agree renumeration levels.

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Centre for Engineering and Manufacturing Excellence Limited

Report of the Trustees

The Trustees are aware of the Charity Governance Code published in 2017, which sets out the principles and recommended practice for good governance within the sector. The Trustees regularly discuss best practice at Board meetings and are satisfied that the Charity applies the principles of the Code within its current governance arrangements.

Related Parties

CEME operates a wholly owned subsidiary CEME Enterprise Limited, this is a commercial organisation that conducts the Conference Centre business and hence is a related party to the charity (CEME Limited). This company was not trading from the 31st December 2023 due to a decline in the commercial events business.

CEME is under the common control of Ford Motor Company, the London Borough of Havering, Havering College of Further Education, Barking and Dagenham College (or their successor body). The company’s Articles member of CEME. As a member of CEME they have the right to appoint a Director to the CEME Board, as noted above.

The Greater London Assembly (GLA) rents to CEME the land on which CEME Centre of Excellence is sited on a 125-year lease at a peppercorn rent. It also leases the Innovation Centre on a 125-year lease at a peppercorn rent. The ultimate freeholder of the land is the Ford Motor Company.

FINANCIAL REVIEW

Trading Performance

CEME’s principal income is derived from fees charged to users of the facility. CEME provides a fully provisioned teaching environment for providers of education and skills and tailored office space and support to businesses.

CEME operates a number of buildings on its park, including the main building that accommodates providers for skills and education and office space, as well as the conference centre. Other buildings include a wholly devoted Innovation Centre. CEME’s revenue for the year was £4,643,608 and the adjusted loss is £14,490 (the loss includes a depreciation charge of £868,995). Prior year revenue was £4,376,496 and adjusted loss of £514,485 (the loss includes a depreciation charge of £878,672).

Reserves Policy

Total funds held at 31 December 2024 amounted to £21,767,586 made out of £13,169,123 restricted funds and £8,598,463 unrestricted funds. Unrestricted Income Funds of £8,598,463 consist of tenant’s income less operating results incurred to date.

Restricted Income Funds consist of grants received for restricted purposes (full list of the grants is contained in note 21 of the accounts) and amounted to £13,169,123 at 31 December 2024 , Capital grants are used to fund building works and the acquisition of new teaching equipment.

The calculation of the required level of reserves is an integral part of the organisation's planning, budget and forecast cycle.

The Trustees believe it is necessary to hold reserves of two months' unrestricted expenditure equating to £592K at 31 December 2024 . The Trustees regularly monitor the cash position and resources available to CEME to achieve its operational goals and are satisfied that current cash flows and the agreed overdraft facility is sufficient to provide adequate working capital.

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Centre for Engineering and Manufacturing Excellence Limited

Report of the Trustees

At the balance sheet date, the Group held unrestricted funds totalling £8,598,463 with net current liabilities of £182,261 (2023: £194,351); the cash component is £1,200,068. Free reserves are calculated as unrestricted funds less tangible fixed assets and loans to procure fixed assets and tenant’s deposits. At the Balance Sheet date, CEME had free reserves of £822k. CEME has prepared a 12months forecast with detailed operating plans including cashflows and is satisfied that with the cash reserves and its bank overdraft facility, it has appropriate reserves.

Going Concern

CEME has delivered a strong financial performance and has enjoyed an encouraging start to 2025 with record levels of tenant occupancy on the campus. The Event space remains a major part of the offering at CEME. The cash position remains strong and this is forecast to be the case throughout 2025.

At the time of making this assessment, occupancy across the campus is strong and the evidence of the last twelve months has suggested that CEME is ideally placed for customers seeking high-quality business space in the vicinity of East London, accessible by car and offering a secure and safe environment. Anticipated occupancy levels in 2025 provides a reasonable assurance of stable performance and steady cashflows to meet working capital needs and servicing debt on a timely basis.

The cash position at the end of February 2025 was £1,444k. Our immediate planning process, including financial projections, has taken into consideration the current economic climate and uncertainty and its potential impact on the various levels of income and planned expenditure.

CEME has a cash balance at the year-end of £1,200k (2023 £1,391k) and it has an overdraft facility of £400K that has been in place since May 2015 and which has never been utilised due to its strong cash position and continued demand of its accommodation and related services.

Management believes that CEME has adequate financial resources and are well placed to manage identified significant business risks.

The Directors, having considered cash flows, income streams and operations believe that CEME has adequate resources to continue in operational existence for the foreseeable future. The Financial Statements have, therefore, been prepared on the basis that the Charity is a going concern.

Risk Management and Internal Control

The Trustees have overall responsibility for ensuring that the organisation operates an appropriate system of controls, financial and otherwise, to manage the strategic and operational risks the Charity is, and could be, exposed to. Processes in place regarding risk management and internal controls include the following:

· The Audit Committee is responsible for monitoring the effectiveness of the internal controls and reports to the Board the results of such monitoring. This is achieved through:

· The systems of control operated within CEME are designed to provide reasonable, but not absolute assurance against material misstatement or loss. They include:

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Centre for Engineering and Manufacturing Excellence Limited

Report of the Trustees

The Trustees, in partnership with the Senior Management Team, play a key role in the identification, evaluation and monitoring of major risks to which CEME is exposed. CEME has robust risk management and monitoring processes in place to assist in the strategic and operational management of the organisation. The risks are monitored through a risk register that is updated and reviewed on a regular basis. The risk register looks at risks and assesses the impact on CEME based on the following criteria financial, strategic, reputational and operational. It also identifies detection methods, preventative and recovery controls.

CEME recognises the value and importance of effective risk management. CEME practices a culture of risk management that permeates all levels and operational functions of the organisation. To support this, additional components of the risk management framework include:

· The requirement for all staff and managers to prepare comprehensive project related risk assessment and management documentation for all new initiatives, which mandates an assessment of risk.

· New development opportunities requiring investment of the organisations resources including capital investment undergo a feasibility analysis, including an assessment of risk.

· CEME's Trustees have established a target for the levels of reserves held, to mitigate the impact on the organisation of the risks that do materialise.

CEME is committed to its risk management processes, and Senior Managers and Trustees are continuing to develop and refine risk management and control processes, which are both, appropriate to the organisation and whose effect can be measured. The table below provides key risks and the actions that are undertaken to manage the risks. CEME also maintains a full risk register that identifies the risks, detection controls, prevention controls and recovery controls. This is formally reviewed on a regular basis.

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Centre for Engineering and Manufacturing Excellence Limited

Statement of trustees’ responsibilities

The Trustees (who are also directors of the Centre for Engineering and Manufacturing Excellence for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

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

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution.

They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Disclosure of Information to Auditors Insofar as each of the trustees of the charitable company at the date of approval of this report is aware there is no relevant audit information (information needed by the charity’s auditor in connection with preparing the audit report) of which the charity’s auditor is unaware. Each trustee has taken all of the steps that he/she should have taken as a trustee in order to make himself/herself aware of any relevant audit information and to establish that the charity’s auditor is aware of that information.

Signed on behalf of the Board

Valerie E. Le Vaillant

Valerie Ellen Le Vaillant OBE, Trustee Date 7th July 2025

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Centre for Engineering and Manufacturing Excellence Limited

Independent Auditors' Report

Opinion

We have audited the financial statements of the Centre for Engineering and Manufacturing Excellence for the year ended 31 December 2024 which comprise the Consolidated Statement of Financial Activities, the Group and Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Opinion on financial statements

In our opinion the financial statements:

• give a true and fair view of the state of the group’s and the charitable company’s affairs as at 31 December 2024 and of the group’s incoming resources and application of resources, including its 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.

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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee's 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 charitable company's or the group’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 trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Centre for Engineering and Manufacturing Excellence Limited Independent Auditors' Report

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the report of the trustees (which incorporates the strategic report and the directors’ report).

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 14, 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 charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

16

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:

Based on our understanding of the charitable company and the environment in which it operates, we identified the principal risks of non-compliance with laws and regulations and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011, and considered other factors such as GDPR, health and safety legislation, tax legislation and employment legislation.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management override of controls and completeness and cut off income. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion,

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

Use of our report

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

Richard Weaver Senior Statutory Auditor For and on behalf of HaysMac LLP Statutory Auditor 10 Queens Street Place London EC4R 1AG

Date 17

8 July 2025

Centre for Engineering and Manufacturing Excellence Limited Consolidated Statement of Financial Activities

for the Year Ended 31 December 2024 (incorporating income and expenditure accounts)

Notes
Income from
Other trading activities
3
Investment income
Charitable activities
Skills & education and business support
accommodation and related services
4
Segro funding
Total Income
Expenditure on
Raising funds
5
Charitable activities
Skills & education accommodation and support
services
6
Skills delivery and business support
Total cost of charitable activities
Total expenditure
8
Net income/ (expenditure)
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward at 1 January
Total funds carried forward at 31 December		 Unrestricted
Restricted
Total
Total
Funds
Funds
2024
2023
£
£
£
£
2,819,092
-
2,819,092
2,563,972
8,868
-
8,868
4
1,714,007
-
1,714,007
1,738,487
101,641
-
101,641
71,033
4,643,608
-
4,643,608
4,373,496
816,108
-
816,108
657,716
3,387,444
316,834
3,704,278
4,158,880
-
137,712
137,712
71,385
3,387,444
454,546
3,841,990
4,230,265
4,203,552
454,546
4,658,098
4,887,981
440,056
(454,546)
(14,490)
(514,485)
440,056
(454,546)
(14,490)
(514,485)
8,158,407
13,623,669
21,782,076
22,296,561
8,598,463
13,169,123
21,767,586
21,782,076

18

Centre for Engineering and Manufacturing Excellence Limited Charity and Group Balance sheets

as at 31 December 2024

Group
Notes
2024
£
FIXED ASSETS
22,824,172		 Group
Notes
2024
£
FIXED ASSETS
22,824,172		 2023
£
22,456,388		 Charity
2024
£
22,810,585		 2023
£
22,442,801
Tangible Fixed Assets
12
Intangible Assets
Investments
13		 22,788,570
35,602
-		 22,423,590
32,798
-		 22,773,983
35,602
1,000		 22,409,003
32,798
1,000
CURRENT ASSETS 1,712,387 1,803,371 1,712,387 1,775,254
Debtors
15
Cash at bank and in hand		 512,319
1,200,068		 412,601
1,390,770		 512,319
1,200,068		 439,778
1,335,476
CREDITORS: amounts falling due
within one year
16
NET CURRENT (LIABILITIES)
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS: amounts falling due
after more than one year
17
Net Assets
Funds of the Charity
Unrestricted income funds
20
Restricted income funds
21
Funds of the Charity		 1,894,648
(182,261)
22,641,911
874,325
21,767,586
8,598,463
13,169,123
21,767,586		 1,997,722
(194,351)
22,262,037
479,961
21,782,076
8,158,407
13,623,669
21,782,076		 1,894,648
(182,261)
22,628,324
874,325		 1,969,605
(194,351)
22,248,450
479,961
21,753,999 21,768,489
8,584,876
13,169,123		 8,144,820
13,623,669
21,753,999 21,768,489

The notes on pages 21 to 33 form part of these financial statement. Company Registration Number : 04238862

The net result for the year reported within the financial activities of the parent charity was a deficit of £14,490 (2023: deficit £805,440).

Approved and authorised for issue on behalf of the Board and signed on their behalf by:

Valerie E. Le Vaillant

Valerie Ellen Le Vaillant OBE,

Chair

Date: 7th July 2025

19

Centre for Engineering and Manufacturing Excellence Limited Consolidated Cash Flow Statement for the Year Ended 31 December 2024

Notes
Cash flow from operating activities:
Net cash (used in)/provided by operating activities
1
Cash flow from investing activities
Dividends, interest and rents from investments
Purchase of property, plant and equipment
Proceeds from sale of plant and equipment
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Repayment of borrowing
Finance lease Interest paid
Cash inflows from new borrowing
Net cash provided by financing activities
Change in cash and cash equivalents in reporting period
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the reporting
period
Note 1: Reconciliation of net (expenditure) to net cash
flow from operating activities
Net (expenditure) for the reporting period (as per the
statement of financial activities)
Adjustments for:
Depreciation and amortisation charges
Finance lease Interest paid
Dividends, interest and rents from investments
Loss on the sale of fixed assets
Decrease in debtors
(Decrease)/ Increase in creditors
Net cash provided by operating activities		 2024
2023
£
£
718,120
83,189
8,868
-
(1,237,914)
(101,039)
(1,135)
-
(512,061)
(17,850)
(295,903)
(443,330)
(147,820)
(55,574)
765,082
325,000
321,359
(173,904)
(190,702)
(191,754)
1,390,770
1,582,524
1,200,068
1,390,770
2024
2023
£
£
(14,490)
(514,489)
868,995
885,503
147,820
55,574
(8,868)
-
1,135
1,234
(92,518)
(89,318)
(183,954)
(255,315)
718,120
83,189

20

Centre for Engineering and Manufacturing Excellence Limited Notes to the financial statements

for the year ended 31 December 2024

1. CHARITY INFORMATION

CEME is a company limited by guarantee (registered number 04238862) which is incorporated and domiciled in England. It is also registered as a charity with the Charity Commission (registered number 1133396). The address of the registered office is CEME Campus, Marsh Way, Rainham, Essex RM13 8EU.

2. ACCOUNTING POLICIES

Basic of accounting

The accounts (financial statements) have been prepared under the historical cost convention in accordance with the Charities SORP (FRS102) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.

CEME 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 note(s).

The Financial statements of CEME Limited and its subsidiary company are consolidated, on a line-by-line basis, to produce the Group financial statements. The consolidated entity is referred to as 'the Group'.

In accordance with section 408 of the Companies Act 2006, no individual statement of financial Activities has been presented for the parent company, Centre for Engineering and Manufacturing Excellence Limited.

Preparation of Accounts on a Going concern basis

After making appropriate inquiries, the trustees have a reasonable expectation that CEME has adequate resources (strong cash balances) to continue its operational existence for the foreseeable future in the case of any decline in demands. We believe that there are no material uncertainties that casts doubt over CEME’s ability to continue in operation. The accounts have therefore been prepared on the basis that CEME satisfies the going concern assumption.

We have set out in the Trustees Report a review of financial performance, the charity’s reserves position and the management actions. We believe that we have adequate financial resources and are well placed to manage these economic risks. Our immediate planning process, including financial projections, has taken into consideration the current economic climate and uncertainty and its potential impact on the various sources of income and planned expenditure.

The directors, having considered cash flows, income streams and operations believe that CEME has adequate resources to continue in operational existence for the foreseeable future.

The accounts have therefore been prepared on the basis that the charity is a going concern basis.

Functional and Presentation currency

The functional currency of CEME Limited and its subsidiary is considered to be pounds ( £ ) sterling because that is the currency of the primary economic environment in which the charity/group operates. The consolidated financial statements are also presented in pounds sterling.

21

Centre for Engineering and Manufacturing Excellence Limited NOTES TO THE FINANCIAL STATEMENTS continued

Income

Income for Skills & Education business support, Accommodation and Related Services represents amounts invoiced, net of Value Added Tax, for the provision of training facilities, business incubation facilities and related supportive activities.

Income from operating leases is recognised in the period to which the rental income and support services relates and to the extent to which the company becomes entitled to the income under a tenancy lease agreement.

Where income for goods and services provided is received in advance of the goods or services being provided by the Centre for Engineering and Manufacturing Excellence Ltd the amount prepaid is deferred.

On receipt, donated professional services are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services of equivalent economic benefit in the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Amortisation of Capital Grants: Where fixed assets are acquired with the aid of specific grants, they are capitalised and depreciated in accordance with the stated depreciation policy, with the related grant being released from Restricted Reserves to Unrestricted Reserves over the expected useful life of the related assets.

Significant Judgements and Estimates

Preparation of the financial statements requires management to make significant judgements and estimates. The areas in the financial statements where estimations have been made include:

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

Financial instruments

CEME Limted 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 amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash and bank and in hand, together with trade and other debtors excluding prepayments. Financial liabilities held at amortised cost comprise overdrafts, trade and other creditors.

22

Centre for Engineering and Manufacturing Excellence Limited NOTES TO THE FINANCIAL STATEMENTS continued

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category.

Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of resources. The majority of overheads have been apportioned on the basis of headcount because that is the main driver of costs in the charity.

CEME initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining

support costs together with the governance costs are apportioned between raising funds and the charitable activities undertaken (see note 8) in the year.

Governance costs are costs associated with the strategic as opposed to day to day management of the charity’s activities.

TANGIBLE ASSETS AND DEPRECIATION

Fixed assets are stated at historical cost or valuation less depreciation.

Donated assets valued at £2,500 or over are recognised at market value as determined by an independent valuation when title is passed to CEME.

Purchased assets with a cost of £1,500 or over are recognised at historical cost when purchased.

Depreciation is provided on all tangible fixed assets at rates calculated to write each asset down to its estimated residual value evenly over its expected useful life, as follows:

INTANGIBLE ASSETS AND DEPRECIATION

Intangible fixed assets are non-monetary fixed assets that do not have physical substance but are identifiable and are controlled by the Charity through custody or legal rights. An intangible asset is recognised when it is separable or arises from contractual or other legal rights and if it is probable that its expected future economic benefits will flow to the Charity, and if its cost or value can be measured reliably. Intangible fixed assets costing more than £1,500 are capitalised.

Intangible assets are measured initially at cost and subsequently at cost less impairment and less any accumulated amortisation. The residual value of intangible fixed assets is nil when calculating the charge for amortisation unless reliable evidence exists to the contrary. Amortisation of intangible fixed assets is charged as an expense to the relevant statement of financial activities (SoFA) category reflecting the use of the asset.

Intangible assets are amortised on a straight-line basis over their useful economic lives. If the useful life cannot be estimated reliably it is presumed to be no more than five years. Amortisation commences when an intangible asset is available for use.

Intangible assets represents software costs which is amortised at 20% per annum.

Intangible assets are only reviewed for impairment if there are indicators that the asset may be impaired.

23

Centre for Engineering and Manufacturing Excellence Limited NOTES TO THE FINANCIAL STATEMENTS continued

INVESTMENTS

Investments in subsidiary companies of Centre for Engineering and Manufacturing Excellence Limited, are stated at cost.

FUND ACCOUNTING

Due to the constraints of law and donor imposed restrictions the charity segregates its funds between restricted funds and unrestricted funds. Unrestricted funds represent the accumulated surplus on income and expenditure and are available for use at the discretion of the Board in pursuing the general charitable objectives of the charity (see Report of the Trustees). Designated funds are funds that have been set aside out of unrestricted funds by the Board for a specific purpose, with the balance constituting the charity’s General Reserves. There are no designated funds at present.

Where funds are received under contracts to run government funded programmes they are classified as restricted. When the service is provided, if any surplus arises this becomes unrestricted with agreement from the fund provider. Restricted funds represent income received where the donor has imposed restrictions as to how the monies shall be spend. The nature and purpose of the restricted funds are also set out in Note 21 to the financial statements.

LEASES

Where assets are financed by agreements that give rights approximating to ownership ('finance leases and hire purchase contracts'), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum finance payments payable during the finance term. The corresponding finance commitments are shown as obligations to the provider of finance.

Finance payments are treated as consisting of capital and interest elements, and the interest is charged to the Statement of Financial Activities on a straight line basis.

All other leases are 'operating leases' and the annual rentals are charged to the Statement of Financial Activities on a straight line basis over the lease term. There are no operating leases at present.

PENSIONS CONTRIBUTIONS

The company operates a defined contribution scheme. The pension costs charged in the financial statements represent the contributions payable by the charitable company during the year.

24

Centre for Engineering and Manufacturing Excellence Limited Notes to the financial statements

3. Other Trading Activities
Rent
Conference Centre
Support Services		 2024
2023
£
£
2,306,771
2,134,337
292,774
169,449
219,547
260,186
2,819,092
2,563,972

CHARITABLE ACTIVITIES

4. SKILLS & EDUCATION AND BUSINESS SUPPORT ACCOMMODATION AND RELATED SERVICES

Further Education and Apprentices
Space and Learning Support
Business Incubation Centre
Cafeteria
Launchpad
Training Centre
5. RAISING FUNDS
Conference Centre
Support costs
Space, IT and Shared Services
Telephone and Franking recharges
Car park cost
Governance costs		 2024
2023
£
£
643,104
579,862
787,062
769,511
28,505
166,353
184,824
157,556
70,512
65,205
1,714,007
1,738,487
2024
2023
£
£
223,658
(16,427)
234,947
322,179
310,556
290,183
12,411
10,591
14,449
25,281
20,087
25,909
816,108
657,716

Taxation - CEME is registered as a charity and as such is entitled to the exemptions under sections 466 to 493 Corporation Tax Act 2010. The company can claim all VAT incurred except where incurred on running costs of government funded programmes. These programmes are run on a reimbursement basis and therefore the cost of the irrecoverable VAT is coved by the grant funding.

6. SKILLS & EDUCATION ACCOMMODATION AND SUPPORT SERVICES 6. SKILLS & EDUCATION ACCOMMODATION AND SUPPORT SERVICES 2024 2023
£ £
Direct costs 2,361,219 2,567,183
Depreciation of building and founding asset infrastructure 662,056 662,056
Support costs 629,352 863,018
Governance costs 51,651 66,623
3,704,278 4,158,880
7. GOVERNANCE COSTS 2024 2023
£ £
Fees payable to the group's auditors for the audit of 22,500 29,000
the group's annual accounts
Fees payable to the group's auditors for other work 2,500 8,000
Taxation fee payable in respect of the subsidiary - 1,470
Trustee expenses, recruitment and insurance1 3,805 5,995
Board and committee support costs2 42,933 48,067
71,738 92,532

1 Travel expenses incurred by Trustees in respect of CEME meetings amounted to £2,289 (2023: £1,479) during the year. The number of Trustees receiving expense reimbursement during the year was 5 (2023: 3). Trustee indemnity insurance cost £1,516 (2023: £1,516).

25

Centre for Engineering and Manufacturing Excellence Limited Notes to the financial statements

Key Management Personnel

2 The key management personnel of the charity comprise the trustees, the Chief Executive and the Finance Director. Executive Directors were remunerated for acting in that role under the authority of CEME's memorandum and articles of association.

These costs reflect the pay and non pay costs of the CEO and Finance Director relating to preparation for and attendance at trustee meetings, and the pay and non pay costs of Non Executive Directors.

Valerie Le Vaillant was paid £15,225 plus a pension of £990 for her services as a Chair. A non executive director, Dr Ritchard Hutchins (T/A Rawdon Mercia), was paid £4,000 for performing that role. Payments to non-executive directors are made under the authority of CEME's memorandum and articles of association.

Key personal management remuneration as follows: pay £226,731 (2023 : £220,302), pension £14,738 (2023 : £11,692), employers NI £37,352 (2023 : £28,668) and other benefit £6,000 (2023: £3,351) . Bonus paid re 2023 £60,483, Bonus accrued re 2024 £86,866 (2023 : £78,619).

8. TOTAL EXPENDITURE

Raising funds
Skills & education accommodation and
support services
Skills delivery and business support
Raising funds
Skills & education accommodation and
support services
Skills delivery and business support		 Direct Cost
561,074

3,023,275
137,712		 Support Costs
Governance Cost
Total 2024
Management
Finance
HR
£
117,813
108,936
8,198
20,087
816,108
315,586
291,805
21,961
51,651
3,704,278
-
-
-
137,712		 Support Costs
Governance Cost
Total 2024
Management
Finance
HR
£
117,813
108,936
8,198
20,087
816,108
315,586
291,805
21,961
51,651
3,704,278
-
-
-
137,712
Management
Finance
HR
117,813
108,936
315,586
291,805
-
-
3,722,061 433,399
400,741
30,159
71,738
4,658,098
2023
£
657,716
4,158,880
71,385
4,887,981

9. STAFF NUMBERS AND COSTS

The average monthly number of persons (including executive directors) employed by the company during the year was:

By activity
Operations
Governance
Support
Wages and salaries
Social security costs
Other pension costs
The aggregate payroll costs of these persons were as follows:		 2024
2023
No.
No.
17
20
2
1
3
3
22
24
2024
2023
£
£
1,058,314
910,596
113,598
92,845
58,221
50,261
1,230,133
1,053,702

Those receiving employee benefits (excluding employer pension contribution)in the following ranges were:

2024 2023
No. No.
£60,001−£70,000 2 2
£80,001−£90,000 1 1
£100,001−£110,000 1 -
£200,001−£210,000 1 1

Pensions contributions made on behalf of employees earning in excess of £60,000 per annum were £26,880 (2023: £19,437).

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund.

26

Centre for Engineering and Manufacturing Excellence Limited Notes to the financial statements

10. RELATED PARTY TRANSACTIONS

In the opinion of the directors the following were related parties of CEME: Ford Motor Company, Havering College of Further and Higher Education, Barking and Dagenham College, London Borough of Havering, and the London Development Agency. CEME transacted with the related parties during the year as follows:

2024 2023
Group Group
£ £
Regeneration programme funding:
London Development Agency - -
For facilities rental and provision of core services by the Group:
Ford Motor Company - -
London Borough of Havering 70,512 73,990
Barking and Dagenham College - -
For goods and services provided by the Group:
Ford Motor Company - -
London Borough of Havering 49,863 34,058
Barking and Dagenham College - -
For goods and services provided to the Group:
Ford Motor Company - -
The balances (owed by) / due to the Group at 31 December were as follows:
Ford Motor Company - 72
Barking and Dagenham College - -
London Borough of Havering (5,214) 6,027
Havering College - -

The nature of the relationships with related parties was as follows: London Borough of Havering Right of approval to changes in CEME's strategic plan and corporate governance structure: London Development Agency

During the year CEME Ltd has recharged CEME Enterprise Ltd (Subsidiary) cost of £ Nil (2023 : £282,226) made out of costs paid on behalf of CEME Enterprise totalling £ Nil (2023 : £253,447 plus rent and services provided by CEME Ltd totalling £ Nil (2023 : £28,749) excluding VAT, at year end the outstanding amount owed to CEME Ltd from CEME Enterprise Ltd was £ Nil (2023 : £70,027). CEME Enterprise Ltd was not trading during the year.

The Conference Centre includes £ Nil (2023 : £28,749) of apportioned costs for facility and IT. The apportionment has been calculated on the basis of volume of space utilised. There were no related party transactions in 2024 .Key management personnel (KMP) and Trustees expenses renumeration is disclosed in notes 11 and 11 respectively

11. NET EXPENDITURE
The net expenditure is stated after
charging
Fees payable to the charity's auditors
for the audit of the charity's annual
accounts
Fees payable to the charity's auditors
for the audit of the charity's subsidiary
pursuant to legislation
Total audit fees
Taxation fees for the subsidiary
Total fees payable
Depreciation of tangible fixed assets
Amortisation of Intangible fixed assets
Rental costs relating to operating leases:
Photocopy machines
(Loss) on disposal of fixed assets		 2024
2023
£
£
14,500
21,000
8,000
8,000
22,500
29,000
-
1,475
22,500
30,475
Group
Group
Charity
Charity
2024
2023
2024
2023
£
£
£
£
856,097
878,672
856,097
869,461
12,898
6,831
12,898
6,831
-
-
-
-
-
-
-
-

27

Centre for Engineering and Manufacturing Excellence Limited Notes to the financial statements

12. TANGIBLE FIXED ASSETS
Cost
1 January 2024
Additions
Disposals
31 December 2024
Depreciation
1 January 2024
Charge in the year
Disposals
31 December 2024
Net book value
31 December 2024
31 December 2023		 Group
Long Leasehold
Buildings
Plant,
Equipment and
Motor Vehicles
Total
£
£
£
36,168,737
6,377,413
42,546,150
333,350
888,862
1,222,212
-
(3,890)
(3,890)
36,502,087
7,262,385
43,764,472
14,229,866
5,892,694
20,122,560
712,682
143,415
856,097
-
(2,755)
(2,755)
14,942,548
6,033,354
20,975,902
21,559,539
1,229,031
22,788,570
21,938,871
484,719
22,423,590
Cost
1 January 2024
Additions
Disposals
31 December 2024
Depreciation
1 January 2024
Charge in the year
Disposals
31 December 2024
Net book value
31 December 2024
31 December 2023		 CHARITY
Long Leasehold
Buildings
Plant,
Equipment and
Motor Vehicles
Total
£
£
£
36,168,737
6,166,055
42,334,792
333,350.00
888,862
1,222,212
-
(3,890)
(3,890)
36,502,087
7,051,027
43,553,114
14,229,866
5,695,923
19,925,789
712,682
143,415
856,097
-
(2,755)
(2,755)
14,942,548
5,836,583
20,779,131
21,559,539
1,214,444
22,773,983
21,938,871
470,132
22,409,003

The net book value of plant and machinery includes £2,148,860 (2023 : £1,183,117) in respect of assets held under finance leases. The depreciation charge on these assets was £124,339 (2023: £136,762).

The long leasehold buildings are constructed on land leased by the Ford Motor Company Limited to The London Development Agency (see also Note 12) and sub-let by the London Development Agency to the Centre for Engineering and Manufacturing Excellence Ltd (CEME). The lease and the sub-lease expire in the year 2127.

In addition to use by CEME and its subsidiary company to operate activities such as the conference centre, and the Gateway to Skills Centre, the property assets are let out under operating lease agreements and short term rentals.

28

Centre for Engineering and Manufacturing Excellence Limited Notes to the financial statements

INTANGIBLE FIXED ASSETS (Group and Charity)
Cost
1 January 2024
Additions
Disposals
31 December 2024
Depreciation
1 January 2024
Charge in the year
Disposals
31 December 2024
Net book value
31 December 2024
31 December 2023		 Software
Total
£
£
62,960
62,960
15,702
15,702
-
-
78,662
78,662
30,162
12,898
12,898
30,162
-
-
43,060
43,060
35,602
35,602
32,798
32,798

13. INVESTMENTS

Group Charity £ £ - 1,000

Shares in group undertakings and participating interests

Investment in subsidiaries - CEME owns 100% of the issued shares of CEME Enterprise Ltd.

14. TRADING SUBSIDIARIES

Net expenditure of CEME before consolidation of the trading subsidiaries was £Nil (2023 : £383,551).

The results for CEME Enterprise Limited (company number 07115923) are shown below. CEME Enterprise runs the conference centre at CEME. Net liabilities of the company were £Nil (2023 : £407,302) at year end.

CEME Enterprise Limited
Total income
Government grant
Cost of sales
Gross Profit/(Loss)
Administration costs
Interest receivable
Loss before taxation
Fixed Assets
Tangible Assets
Current Assets
Debtors
Prepayment
Cash at bank and in hand
Creditors: amounts falling due within one year
Creditors
Net Current Liabilities
Total Asset Less Current Liabilities
Net Liabilities
Capital and Reserves
Share Capital
Retained Earnings		 2024
2023
£
£
-
169,449
-
-
-
(232,600)
-
(63,151)
-
354,102
-
-
-
290,951
2024
2023
£
£
14,587
14,587
42,850
42,850
-
-
55,294
55,294
98,144
98,144
-
0
14,587
14,587
1,000
1,000
13,587
13,587
14,587
14,587

29

Centre for Engineering and Manufacturing Excellence Limited Notes to the financial statements

Group Charity
2024 2023 2024 2023
15. DEBTORS £ £ £ £
Due within one year:
Trade debtors 161,795 217,813 161,795 174,963
Amounts owed by group undertakings - - - 70,027
Other debtors and prepayments 350,524 194,788 350,524 194,788
512,319 412,601 512,319 439,778
CEME Ltd has secured an overdraft facility of £400,000 with Barclays bank. This is secured on net debtors.
Group Charity
16. CREDITORS & LOAN : amounts falling due 2024 2023 2024 2023
within one year
£ £ £ £
Trade creditors 543,221 319,653 543,221 311,817
Deferred Income 95,831 332,670 95,831 332,670
Obligations under finance lease and hire purchase
contracts 166,401 183,992 166,401 183,992
CBILoan 66,779 61,333 66,779 61,333
Amounts owed to group undertakings - - - -
Other taxes and social security 67,889 145,077 67,889 137,121
Other creditors and accruals 954,527 954,997 954,527 942,672
1,894,648 1,997,722 1,894,648 1,969,605
Movement on deferred income (Due Group Charity
with in one year)
2024 2023 2024 2023
£ £ £ £
Deferred income brought forward 239,645 384,803 239,645 384,803
Realised during the year (1,197,686) (1,310,951) (1,197,686) (1,310,951)
Deferred during the year 1,053,872 1,258,818 1,053,872 1,258,818
Deferred income carried forward 95,831 332,670 95,831 332,670

Deferred income relates to rental income received in advance of the period to which it relates.

Deferred income
CBILoan
Total creditors falling due after more than 1 yr
17. CREDITORS & LOAN : amounts falling due
after more than one year
Obligations under finance leases and hire purchase
agreements		 Group
Charity
2024
2023
2024
2023
£
£
£
£
-
93,025
-
93,025
826,542
272,374
826,542
272,374
47,783
114,562
47,783
114,562
874,325
479,961
874,325
479,961

CBILoan terms are 5 years with the first payment during Jul 2021 (12month after the first drawdown), and a margin of 3%. The first 12 months are repayment and interest free. CBILoan was paid off during the year.

CBILoan 2 terms are 5 years with the first payment during Jul 2022 (12month after the first drawdown), and a margin of 3%. The first 12 months are repayment and interest free.

30

Centre for Engineering and Manufacturing Excellence Limited Notes to the financial statements

Group Charity
18. COMMITMENTS UNDER OPERATING AND 2024 2023 2024 2023
FINANCE LEASES
£ £ £ £
Future minimumoperating leasepayments are as
follows:
Plant and machinery:
-Within one year 11,158 11,080 11,158 11,080
-Between one and five years 38,227 37,837 38,227 37,837
Future minimumfinance leasepayments are as Group Charity
follows:
2024 2023 2024 2023
Building, Furniture, Plant and machinery: £ £ £ £
-Within one year 166,401 183,992 166,401 183,992
-Between one and five years 826,542 272,374 826,542 272,374

The London Development Agency rent the land on which the CEME centre of excellence is sited on a 125 year lease to CEME at a peppercorn rent. This lease excludes the Innovation Centre and expires in more than five years.

The London Development Agency rent the Innovation Centre land on a 125 year lease to CEME at a peppercorn rent. This lease expires in more than five years.

-not later than one year;
-later than one year and not later than five years
-later than five years;
20. STATEMENT OF FUNDS
Unrestricted Income Funds
General funds
Restricted Income Funds
Total
2023 Comparative
Unrestricted Income Funds
General funds
Restricted Income Funds
19. RENTAL OPERATING LEASES
The future minimum lease rental income due from
tenants operating leases are as follows:		 2024
2023
2024
2023
£
£
£
£
3,015,523
3,040,857
3,015,523
3,040,857
1,092,176
3,333,166
1,092,176
3,333,166
-
253,753
-
253,753
Balance
Income
Expenditure
Balance
1 Jan 24
31 Dec 24
8,158,407
4,643,608
(4,203,552)
8,598,463
13,623,669
-
(454,546)
13,169,123
21,782,076
4,643,608
(4,658,098)
21,767,586
Balance
Income
Expenditure
Balance
1 Jan 23
31 Dec 23
8,218,347
4,373,496
(4,433,436)
8,158,407
14,078,214
-
(454,545)
13,623,669
22,296,561
4,373,496
(4,887,981)
21,782,076

31

Centre for Engineering and Manufacturing Excellence Limited Notes to the financial statements

21. STATEMENT OF RESTRICTED FUNDS

Capital and revenue costs of the
Gateway to Skills Centre2
Capital and revenue costs of the
Gateway for Business programme3
SRB 5 Capital - Delivery plan1
SRB IT Capital1
DTI1
Innovative Clusters Fund1
LDA grant for erection of campus and
acquisition of teaching equipment1
ERDF Objectives111
LSC Capital1
NTI Capital1
Department for Communities and
Local Government HSSMI4		 Balance
Income
Expenditure
Balance
1 Jan 24
31 Dec 24
37,946
-
(1,134)
36,812
14,996
-
(457)
14,539
3,201,711
-
(107,923)
3,093,788
626,066
-
(21,067)
604,999
2,434,958
-
(81,983)
2,352,975
522,130
-
(17,600)
504,530
3,589,367
-
(117,084)
3,472,283
2,169,106
-
(73,117)
2,095,989
586,010
-
(19,753)
566,257
432,021
-
(14,428)
417,593
9,358
-
-
9,358
13,623,669
-
(454,546)
13,169,123		 Balance
Income
Expenditure
Balance
1 Jan 24
31 Dec 24
37,946
-
(1,134)
36,812
14,996
-
(457)
14,539
3,201,711
-
(107,923)
3,093,788
626,066
-
(21,067)
604,999
2,434,958
-
(81,983)
2,352,975
522,130
-
(17,600)
504,530
3,589,367
-
(117,084)
3,472,283
2,169,106
-
(73,117)
2,095,989
586,010
-
(19,753)
566,257
432,021
-
(14,428)
417,593
9,358
-
-
9,358
13,623,669
-
(454,546)
13,169,123
(454,546)
13,169,123

1 These grants were contributions to the capital building and infrastructure setup costs of the CEME campus.

2 These grants were provided to equip the Gateway to Skills Education centre.

3 This grant was provided to equip the Gateway for Business small business support programme.

4 This grant provides funding for the High Speed Sustainable Manufacturing Institute. HSSMI is a division of CEME with a purpose of conducting leading edge manufacturing research with an aim of improving efficiency of manufacturers and supply chain companies. The remainder of £9,358 will be paid to HSSMI once CEME receives a funding request.

Analysis of net assets between funds
Tangible fixed assets
Intangible fixed assets
Current assets
Current liabilities
Creditors falling due after one year
At 31 Dec 2024
Comparative 2023
Analysis of net assets between funds
Tangible fixed assets
Intangible fixed assets
Current assets
Current liabilities
Creditors falling due after one year
At 31 Dec 2023		 Restricted
Funds
Unrestricted Funds
Total Funds
13,159,765
9,628,805
22,788,570
-
35,602
35,602
9,358
1,703,029
1,712,387
-
(1,894,648)
(1,894,648)
-
(874,325)
(874,325)
13,169,123
8,598,463
21,767,586
Restricted
Funds
Unrestricted Funds
Total Funds
13,614,311
8,809,279
22,423,590
-
32,798
32,798
9,358
1,794,013
1,803,371
-
(1,997,722)
(1,997,722)
-
(479,961)
(479,961)
13,623,669
8,158,407
21,782,076

22. CONTROL

CEME is under the common control of Ford Motor Company, Havering College of Further and Higher Education, Barking and Dagenham College and London Borough of Havering. The company's Articles of Association dated 2 January 2010 state that each of the above is a member of CEME.

32

Centre for Engineering and Manufacturing Excellence Limited Notes to the financial statements

Unrestricted Restricted Total
23. COMPARATIVE SOFA BY FUND Funds Funds 2023
£ £ £
INCOME
Income from generated funds
Other trading activities 3 2,563,972 - 2,563,972
Investment income 4 - 4
Income from charitable activities - -
Skills & education and business 4 1,738,487 - 1,738,487
support accommodation and related
services
Segro funding 71,033 - 71,033
Total income 4,373,496 - 4,373,496
- -
- -
Expenditure on Raising funds 5 657,716 - 657,716
Charitable Activities - -
Skills & education accommodation and 6 3,775,720 383,160 4,158,880
support services
Skills delivery and business support - 71,385 71,385
Total expenditure 8 4,433,436 454,545 4,887,981
Net (expenditure) (59,940) (454,545) (514,485)
RECONCILIATION OF FUNDS
Total funds brought forward at 1 8,218,347 14,078,214 22,296,561
January
Total funds carried forward at 31 8,158,407 13,623,669 21,782,076
December

33