2025-07-31-accounts

Y Coleg Merthyr Tudful The College Merthyr Tydfil Merthyr Tydfil College Limited Coleg Merthyr Tudful Cyfyngedig Annual Report and Financial Statements for the year ended 31st July 2025

Merthyr Tydfil College Limited Annual Report and Financlal Ststements for the yoar ended 31 July 2025 StralegiG report Director5, rep(Yl 10-13 Public Benefit statement 14-15 Independent Audrtorfs Report to the Member of Merthyr Tydfil College (Ihe"Institution"I 1f*18 Incorne aTrJ Expenditure acci)unl 19 Slaternenl of Changes in Reserves 20 Balance Sheet 21 Cashflt)w Statement 22 A¢¢ounting polries 23-26 Notes to the financial statements 2749 Cc41ege Highlights 202412025 4042

Merthyr Tydfil College Llmited Strategic Report for the year ended 31 July 2025 The directors present their strategic report and the audited financial statements of The College Merthyr Tydfil (known as 'lhe Company, or 'lhe College'l for the year ended 31 July 2025. The financial statements have been prepared lo comply with the Companies Act 2006 and the Slalemenl of Re¢ommended Practice {SORP)'. Accounting for Further and Higher Education 2019, the Financial Reporting Standards IFRS 102} and in accordance with IheAccounls Direction for Further Education Colleges in Vvales 2024125 Prlnclpal activities The College is a wholly owned subsidiary of the University of South Wales IUSWI and the principal activities are the provision of further education, higher education, work based learning, professional training, consumancy and the delivery of Government iniliatives lo industry. Business review and future develo enl$ In 2024 the Board developed a rthv fNe-year strategic plan whlch sets out our Vision, Mission and Strategic Priorities for 2030. The college recognises that the period covered by this Strategic Plan will be a lime of thange, challenge and opportunity due lo advances in technology and the transition lo net Zero. The College must continue to be an engine of social mobility, preparing our learners not only for the ji)bs of today bul also for those that will exist in the future. Our exciting plans for a new Sustainable Technology Centre will provide slate of the art facilities to support the development of the skills that will be so vital for economic growth, making our leamers highly sought after by employers, universtties and the community. The centre will also promote fijrther collaboralion with key employers and make the borough more appealing lo inward investors. This strategy is ambitious but, given the excellent position the Coilege 15 in. with 115 team of inspiring teachers and support colleagues. we feel that il is more than achievable. Underplnning the Strategic Vision and Mission, the college has identrfied four key strategic priorilios.. Our People and Culture We will provlde a welcoming, safe, inclusive and supportive environment for all to thrive, work and study. Our Leaming Experience - We will place our learner5 al the centre of everything we do. providSng a learning experience that is inspiralKsnal, creating inclusNe and innovalive and exwsing them to a culture of curiosity, Collaboration and challenge. Our Place In the Community- We will work in collaboration wilh external partners to drive forward eCOTr)m￿, social and CLJllural change, supporting Ihefulure wellbeing and pros￿rity of the communities we serve. Our Resources and Environment - We will remain a financially sustainable. socially ethical and resilient organisation. providing a sustainable environment which is equipped for the delivery of high quality and responsive leaming. Curriculum develo ents The College works in partnership with local schcM)Is, the local authority. employers and the South East Wales Regional Partnership lo offer an innovative, dislinclive, high quality curriculum that raises aspirations and transforms lives. The College curriculum provides industry relevant, employer focussed c￿rSeS and qualifications with appropriate progression palhways for learners of all abilities and ages lo succeed and progress on lo higher level learning, apprenticeships or employment.

Merthyr Tydfil College Limited Strateglc report for the year •nded 31 Juty 2025 (contlnued) The college's Curriculum Portfolio Group together with representation on the Merthyr Tydfil 8usiness Education Together Partnership Group provides an effective plafform for employers and local community representatives to feed into ¢urriculum development and delivery. This feedback. together with the use of detailed Lightcast (Economi Modelling Specialist International) labour market intelligence data, has enaNed the college lo bring together and triangulate loca5 school planning data. labour market intelligence and employer feedback to ensure that our curriculum is both demand-led and inclusive whilst also responding to industry and economic need. This has resulted in the successful introduction of new industry relevanl courses and pathways lo support key regional skills pruity area5. including Cyber, Digital. Construction and Built Environment and Green and sustainable lechnologies. In 2022. the college also introduced a new lower-tevel Vocational pathways course lo bridge gaps in provision and exlend the choices available lo learners. This has proved very popular, with numbers enrolling on this course increasing year on year (84 learners enrolling on Ihe course in 2025, comparison to 72 leamers enrolling on the course for 20241 Movlng forward, the collage has developed a Curriculum Slralegy for 2025-2027, which underpins and supports the college's overall strategic plan. This strategy sets out ten key priorities-. 1. Develop an industy recognised 'Sustainable Centre of Excellence in Advarted Manufacturing and Built Environment, 2. Be¢ome recognised as a leadiw 'Digital and Media Centre of Ex￿llence. 3. Strengthen our ststus and reputation as a 'Top Performing A level Academy, 4_ Increase the volume of courses and learnlng opportunities swovlded through the medium of Welsh, with a specific focus on key sector priority areas. 5. Consolidate and streamline our level 1 and revel 2 provision lo provide a solid foundation and progression pathway into a variety of level 2 and 3 courses 6. Enhance and promote the employability, enterprise and enrichment aspects, skills and experience on offer for each course, with a key focus on introducing an element of worklindustry experience linked lo key employers and organisalions aoross all courses 7. Consolidate and enhance the 'brand' and perCept￿n of key traditional courseslsubjecl areas lo maximise r￿UlIMent 8. Explore the opportunity lo broaden the range of apprenticeship 2nd Occupational QualTficalions in the Workplace programmes on offer to include seGlors such as Electrical Inslallalion, Construction, Advanced Manufacturing and Conslruclion, CyberllT and Health arKI Care. 9. Develop an industry relevant, employer-focussed and a¢cessible part-time provision that complements the priorities and objectives arising from the Welsh Government's Part-time priorities, apprenliceshlp strategy, ernployability plan and regional skills partnerships. enhances skills growth alld conlribules posllively lo the gconomy of Merthyr Tydfil, the Heads of the Valleys and Cardrff City region, whilst also addressing lo¢al community priorities and needs. 10. Enhance the college's repvlation as a'local higher educallon provideTILrfelong learnlng Cenlre, through the provision of an enhanced portfolio of HE and Level 4 + Professional programmes, including flexible programmes lo suit learner A5 part of the college's longer-term Curiiculum strategy, work Is 81so ongoing with the Merthyr Tydfil Local Authority and secondary Schools to mep progression pathways and routes in response to the new Made-for-wales GCSES, which are being laught in schools across Wales from this September 2025 and also examine new 14-16 pathways In line with the new VCSES, which will be rolled out from September 2027.

Merthyr Tydfil College Limited Strategic report for the y•ar ended 31 July 2025 (contlnuad) Partnershi The college ha5 Strong partnership links wf(h local schools, wlh 83¥0 of the year 11 pupils progressing to the college in September 2025 12024.. 83010, 2023.. 80Yo}- This is further enhanced through a comprehensive school transition programme, in¢luding lasler days, open evenings, Have A Go Events, attendance at year 11 assemblies and parents evenings and s¢hool based subjecl talks. New fow 2023-2024. the college introduced a 'Get Ready for College Hub, at each of the four Merthyr Tydfil Secondary schools and also at Idris Davies &18 school based in Rhymney. Aimed al providing a one-slop shop for pupils and parents lo drop in to for advice and guidance around courses and support al college. these Hubs have proved very successfvl. leading lo increased applications and enrolments into the college and supporting the achievement of fvll-lime further educalh)n recruilmenl and fijnding targets over the last years. During 2024-2025, the college continued to build upon Its excellent relationships with local employers, engaging with over 250 employers and progression partners across the year lo drive forward college provision, work experience placements and volunteering opportunities. employability advice and guidance, employer engagement projettts. provision of part-lime training and development thrc4Jgh both our part-time funding and PLA route, careers lalks and virtual careers fairs, progression and taster events. Key employers engaged with include, Tilbury Douglas, General Dynamics. Tenneco. Cyber First Schools. Saffron Seals, BBC Cymru. Panasonic. Tenneco, Creative Wales. Barclay5. Cwm Taf Health Board, Valleys Construction, Active Merthyr, Table Tennis Wales, Cyber Cymru Wales. Royal College of Nursing Cadet Scheme. Bridewell, Dwr Cymru and CCR Energy. Work has also been undertaken to engage with Tryd8n Gwyrdé, Merthyr Valleys Homes, and Cynon Taf Housing to drive forward further provision in key sector skills priority areas, including Green and Sustainable Technology and Energy, Digital and Cyber and Con51ruclion. This will enable learners to further develop their skills arKI qualrfications and pr￿resS into higher paid roles in these ar8as and Support the delivery of green and sustainable training and courses, a key priority area for Medr. Looking ahead towards 2025-2026. the college is working in partnership with Fintech Wales to18unch a new Fintech Academy for Business and IT learners and also working with General Dynamics to launch a new Engineering Academy. Working with our partner employers, the college also has plans lo further expand work experience placements for learners to enhance their work experieF)ce and employability skills, particularfy where they ar8 seeking to Progress directly into employment or an apprenticeship al the end of their studies at the college. Key areas where this will be taken forward include Conslruction with Tilbury Douglas. Learner Voice The College conducts annual first experience and learner voice surveys, which seek view5 on leaching and learning quality, student experience. assessment and feedback, learner support, learner voice and other key quality indicators. Outcomes of our 202412025 Surveys indicate that 97% of further education learners were satisfied with their leaming experience at college1202312024..99°/0)- Higher Education {HEI learners a150 lake part in the annual National Siu(Jenl Survey. The NSS Survey highlighted that 83% of HE learners were satisf￿d with their experEnce at college during 20412025. Feedback from the surveys 15 used alongside the outcomes of learner focus groups to improve and develop college courses.16arner support, enrichment arbd general college life to enhance the sludenl experien￿. Feedback is discussed with the learners themselves and staff with resultant actions communicated back lo learners Ihrough a variety of mechanisms, including You Said. We Did campaigns.

Merthyr Tydfil College Limited Strategic report for the year endod 31 July 20251continued) Financial Strate The Financial Strategy is designeé to ensure the long-teTm viability and suslainabilily of the College. The strategy is align8d lo the annual College Budget, Strategi¢ Plan and Curriculum Flanning prooess. 11 w¢ll provide direction lo the Estates and IT Strategy and will seek to outline the capital funding direction. The Strategy will describe the financial objectives of the College whilst providing the framework for the developmenl offuture years, plans alongside assessing uncertainties lo minimise impact, ensurfng financial suslainabilily. Pressures on the budget will be exacerbated, with uncertalnties around funding levels ￿)mbined with external pressures such as inllalion on non-slaff costs and utilities. Over the past five years the college h88 reviewed fts staff structure lo reduce costs and increase efficiency but will still need lo accounl for increasing pension costs, increasing pay costs due lo incrernental drift. aPP￿nI￿ceshlp levy and unp￿dICtsb1e cost of living rises. Financial Monitorin Financial monitoring and reporting is critical lo supwrting the delivery of the College's Financial Slrategy. This Strategy confirms the inslilulions commilmerrt lo maintain solvency and to generate sufficient funds for investment and the financing of ongoing activity, To monitor the implementation of the strategy an appropriate reporting system is required. Monthly management accounts are prepared ami are reported ir)temally ar￿ also submitted lo the University of South WaleslUSW). Within these reFM)rts all substantial variances will be explained following a discussion with the Budget Holder and the expected oullurn for the year is monitored and reported. On a quarterly basis the financial position is reported intemally lo College Exe¢ulive and Management Team, to the Board of Directors and lo USW the parent company for consolidation purposes. The report will contsin an Income and Expenditure Account, including commentsry on performance a forecast of the outtum lor the financial year, a balance Sheet and a Cash Flow Forecast. The Governing Body will also assess the financial relums submitted by the College each year audited financial statements, a financial forecast mid year relum along wf(h the financial slralegy. Reserves The college is aware of the need to secure ils viabilty beyond the immediate future. The College recognises the importance of reserves in the financial stability of any organis8tlorb and ensures that there affj adequate resefves lo support its core activities and to invest for ils future needs. The reserves which the college ￿tainS can be calegorised as follows.. Capital Reserves- To provide fvnds to meet the current and future capital spend requirements. Strategic Reserve - To meet the cost requirements of strategic initiatives as per the college slralegic plan and the Financial Strategy. 11 is the colleges intention to continue to increase reserves through the generation of annual operating surpluses. Goin Concern The activities of the College along with the key factors likely to affect further performance are sel out in this report. The financial position of the College. its cash flow and liquidity are pre5enled in the Financial Slalemenls and accompanying notes. In assessing whether the going concern basis is appropriate the DiTeclors have considered the College's expected fuluTe cash flows and are satisfied that the College has adequate resources to conts'nue in operational exislencfr for a rninimum of 12 months from Ihe dale of the signing of the financial slalemenls. K Performance Iné*alors The following five key performance indicators {KPls} are relevant sthen assessing performance for the year.. Surplus - £1,407k12024'. £1,357KI Year-end cash position - £9,875K12023.' £9.427KI Current ratio- 3.34 {2024: 3.241 Learner Voice_ 970A overall FE salisfaclk)n for 202412025, 83.kn overall HE satisfaction for 202412025 Learner Outcomes- 99Yo A level success rate, vocational success rates for 202412025 are not yet available

Merlhyr Tydfil College Limited Strategic report for the year ended 31 July 2025 (continued} Student numbers." For the academic year 2024125 the college had 2,821 Further Education studenls11839 on full-lime courses and 982 on part-time courses). In addition, we had 159 leamers on HE courses. This compares lo 2201 in 202312024 with 1636 on full-time courses and 565 on part-lime courses and 175 Higher Education students {134 full- lime and 41 part-lime}. As in previous years these numbers, particularfy on part limelhigher education provision, have been adversely affected due lo tuition fees. a buoyant employment market and a higher r¢umber of learners seeking lo progress into apprenticeships or employment. Quality= Sludenl performance in 2024-25 remained strong, particularly at Level 3 and A2. A2 performance at A'-C improved despite the grade boundsries returning to pre-pandemic levels. Outcomes al Level 1 have improved significantly as have ESW qualrficalions. Appropriate support and intervention was introduced as a result of robust quality processes including Quality Boards and Quality Weeks which scrutinised classroom practice. feedbaGk, learner progress, attendance and ctyjrse completion rates. This balaTrce of challenge and support will continue in the 2025- 2026 academic year. Health & Safety.. The most recent audit conducted by USW, demonstrated a comprehensive approach lo the management of Health and Safety, this was conducted adopting the HASMAP star￿ardS. The College has an action plan lo address any shortcomingslareas for improvement identified in the audit reports. An update is provided at each Board meeting along wilh a review of progress against the action plan. idi8 Com On the 1st August 2019 the College acquired Tydfil Training Consortium Ltd ITTC Ltd}, a charitable company engaged primarily in the delivery of the Welsh Governments Work Based Learning programme. TTC Ltd had lumover for the year ended July 31 2025 of £2,199K12024 £2,11 Okl. For reporting purposes, thes8 are Consolidated by USW. Since acquisilion, the College and Thc Ltd management teams have been working together to maximise the benefits available lo both parties and the community at large, by combining resources and skills. This will gNe the greatest potential lo maximise the offer from opportunities, such as the UK Government's Shared Prosperity Fund. Prlnclpal risks and uncortaintles Outlined below are the principal risks facing the College. Not all the factors are wI￿llY wilhin the College's control. Oth8r fa¢tors besides those listed below may also adversely affect the College. Government fundin The College relies considerably on contTnued government ftjnding. In 2025 880k of the College's revenue was ultimately PLtblic funded and thi5 level of requirement is expected lo continue. There can be no assurance that government policy Of practice will remain thè same or that public funding will continue at the same levels or on the same terms. The College miligales the risk by.. Ensuring that it continues to explore opportunitie5 to diversify income Delivering a curriculum th8t il responsive lo the needs of the local community whilst also supportiro Regional priority sectors and future skills needs Conslanily monitoring its recruitment position and modelling the impact on future years funding Maintaining a key focus on ils quality profile lo maintain and enhance its excellent repulation and be the college of choice for learners, parents and employers alike. Maintaining and continuing lo build partnerships wrth schools, employers and the business community Being responsive lo any funding intelligence in a timely manner Financial Sustainabilil The College will continue lo explore alternative SOLtrces of income both in ¢ollaboralion with partners and in ils own right. This rtsk is mitigated in a number of ways= Funding is derived through a number of diiect contractual arrangements., Expansion of higher education under MEDR'S widening access agenda, Consideiable focus and investment is placed on maintaining and managing key relationshlps with the various funding bodies., and Ensuring the College is focused on those priority sectors which will Gontinue lo benefit from public funding.

Merthyr Tydfil College Limited Strategic report for the year ended 31 July 2025 (contlnued) The ongoing impa¢l of the coronavirus pandemic along wilh the cost of living challenge has created ongoing uncertainty and disruption lo both the economy and education. This has resulted in a number of finar)cial and operational ehallenges. The College Is monitoring the rise on ulilily costs and looking lor ways to improve efficiency. along with close monitoring on the infialionary impact on consumables. This is being considered for the short, medium and long term. Rlsk management The College is commilled lo exhibillng best wactice in all areas of risk management and corporate governance, fully adhering lo the principles sel out in the Governance C(xYe of Pra¢lice and General Principles. The College's Board of Directors is responsible for the system of internal control and forreviewing ils effectiveness. The system is designed lo manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assuiance again$1 material misslalemenl or loss. The College maintains a risk regislerwhich considers business, operational, compliance and financial risks. The register is regulady reviewed by senior management, and the College's risk n)anagement pmcess is consolidated into the University of South Wales (parent entity) whose internal control guidance adheres lo the combined code as amended by the British Universities Finance Direclors Group. The Board of Directors met four limes during the reporting period. In terms of audit arrangements, whilst a separate College Audit Commillee has not been established, all audit reports and reviews and other information relating lo the ompany are formally received by the University of South Wales, Audit Committee which meets ft)ur times per year. The 2024-25 annual report ofthe intemal audrf(ors was considered by both the University's Audit Committee and the College's Board of Directors, who also approved the internal audit plan for 2025-26. As part of the Unwersity of South Wales group financial risk management and internal control framework, as highlighted in the finanoal statemen15 of the University of South Wales, the College has undertaken work during the year to develop and embed the system of internal control, inclu(Jing financial. operational and risk management which is d05igned lo protect the College's assets and reputatlon. Based on the strategic plan, the College Executive {Ihe senior management team) undertakes a comprehensive review of the risks lo which the College is exposed. The College Executive idenlify systems and procedures, including specrfic preventative actions which should miligale any potential impact on the College. The internal controls are then implemented and the subsequent year's appraisal will Teview effectiveness and progress against risk miligalion actions. In addition lo the annual review, the College Executive will also consider any risks which may arise as a result of a new area of work being undertaken by the College. A risk register is maintained at the College wh￿h is reviewed f(MJr times a year by the Board of Directors. The risk register outlines the risks associ8ted with each of the College strategK priorities, Ihe likelihood of those risks occurring. their potential impact on the College and the actions being taken to reduce and mitigate the risks. Each of the risks align lo one of the four key strategic priorities Our Learning Experience, Our People and Cullure, Our Place in the Community and our Resources and Environment. The risks and associated actions identified within the register are fundamentsl lo ensuring that the College is aware of all risks lo achieving its priorities. Risks are priorilised using a consistent $¢oring system. The College as part of the University of South Wales Group, has agreeé with its internal audilors that their programme of work and the approach lo intemal control will be risk based.. this indudes business, operational and compliance risks as well as financial r￿k. This has been in place for the year ended 31 July 2025 and in place up lo the date of approval of the Financial Statements.

Merthyr Tydfil College Limited Strategic report for the year ended 31 July 2025 {continued} Carbon Emissions Report 202412025 Consolidalron Approach: Operational Conlrd- Reporting Penod.. 01 ￿ August 2024_ 31SI July 2025 2024125 2023124 SCOPE 1 DIRECT EMMISSIONS{g.g. Mains Gas, Combustion sour¢•s, Company vehlcles and Refrigerant} Total {tonnesl Tco2E 180.62 191.20 SCOPE 2 ENERGY INDIRECT {e.g. Company Owned EV. Malns Eloctrfcityi Renewable Electriclty> Total (tonnesl Tco2E 180.90 262.80 SCOPE 2 OTHER INDIRECT le.g. Waste. WFH. Commutlng, Bu$ln8ss. Travel & Hotels, Inboundloutbound Dellverlfrs} Total Ilonnes) Tco2E 410.38 275.70 TOTAL EMMISSIONS Tll.90 729.70 Qualrfication and reportlng rnethodology In 202412025, the College engaged the servi￿$ of Carbon Neutr21 Britain to assist with the preparation of the Carbon Emissions Report. The layout of the ￿port has been ¢re21ed in a dlfferent formal from last year and the College has converted the data from last year into this formal. As mentioned, the College partnered with Carbon Neutral Brilaln to undertake thi$ piece of work, plu5 identify and offset the organisation's environmental data. The offsetting in relation lo becoming carb)n neutral was calculated al £7,1781£7.75 per tC02el. The College opted lo support the Climate Fund of renewable projects around the world. Omitted from this yearfs data collecllon was Working from Home {WFHI and Commuting, as Ihis dala was Th)t captured during the reporting period. These categories will be included In the 202512026 emissions repcrt. Intensity Measurement The chosen intensity measurement ratio is lolal gross emlsslons in melrlc tonnes C02e per pupil, the recommended ratio for the sector. Measure8 taken to Improve energy efflGignGy The college has a commitment to maintaining an environmentally sustainable, supportive and technologically innovative institution. The building and water is healed by gas along with a bM)mass system. The Cdlege has PV solar panels installed on the roof of the main building and workshops. There are no further plans lo expand due to limited roof space. The majority of traditional lighting in the main building has been replaced with LED. alory with a number of areas in the workshop blocks. During 202412025 the LED project was extended into the storerooms and plant n)offts and the outstanding areas wlthin the workshop blocks. The 202412025 period has seen a signrficant shtft in the area of Waste Disposal. Ther8 has been improved waste stream separation and in turn improved data lo work with for inclusion wrthin this report.

Merthyr Tydfil College Limited DirectorJ' report for tha year ended 31 July 2025 Dlrectors and th•ir interests The existing directors and those who held off￿e during the year and up lo the date of signing Ihe annual report and financial statements, are given below= Mr Stephen Forsler" Appointed 1 August 2023 (Chair from 1 Augusl 20241 Resigned 31 December 2024 Appointed 1 August 2023 (Chalr from 10 February 2024) 1314} Appointed 1 September 2021 lex Off￿10) 14141 Appointed 21 September 2018 lex officiol Principal I Chief Executwe 14141 Appointed 17 October 2022 Staff Director (Resigned 10 March 2025) 10121 Appointed 27 November 2023 Student Director (Resigned 31 July 20251 13141 Appointed 7 January 2022 Company Secretary {414) Appointed 1 August 2023 1314} Appointed 27 November 2023 1414} Appointed 1 August 2024 14141 Appointed 1 Augusl 2024 {314} Appointed 1 May 2025 Appointed 7 July 2025 Staff Director Appointed 1 August 2025 Student Director Appointed 1 August 2025 Appointed 1 August 2025 Mr lan Morgan. Dr Ben ca￿ert Mrs Lisa Thomas Ms Angela Powell Ms Sandra Parkilna Mrs Lucy FitzGerald Mrs Susan Walker" Mrs Louise Evans" Mr Matthew Dicks" Mr Alessandro Ceccarelli. Mr Daniel Tromans. Ms Alexandra Strong Ms Sasha Phillips Ms Catherine Siobhan Cok" Mr Peter Reason" 'non-executive directors l}Atlendance information is provided for members serving during the year ended 31 July 2025, expressed aslhe number of meetings of the Board of Directors attended out of a total number of meetings the member was due to attend. The members of the College Executive normally in attendance al meetings of the Board of Directors are- Vice Principal Resources & Chief Operating Officer, Vice Principal Curriculum & Quality. No payments have been made lo or on behalf of Ihe above with the exception of Mr5 Lisa Th)mas (Principal I Chief Executive l Accounting Officer) whose remuneration is dlsclosed in Note 4, and Ms Angela Powell (Staff Director) and Ms Alexandra Strong Istaff Director) Directorn, Appointment Four new members were appointed lo the Board of Directors in the 2024125 academic year, three of which were appointed via an external search exeicise. Appointments were approved by the USW Board of Governors as the College'5 membef. Three new member$ 50ined the Board from 1 August 2025, hvo of which were appointed via an external search exercise. Training and Devolopment DU￿n9 the year, College Directors were provided wth details of training sessions run be Colegau Cymru. Dlrectors Indemnities The cornpany pu￿hased and maintained throughout the financial year directors, and officers, liabilty insurance. This was also in force at the dale of approv81 of the annual report and financial statements. io

Merthyr Tydfil College Limited Directors, report for the year ended 31 July 2025 {continued) Dlvidonds The company is limited by guarantee. The directors do not T￿0Mmend the payment of a dividend in respect of the year ended 31 July 202512024- nil) Statement of Corpor*o Governance and Intgrnal Control The College is Gommitied lo exhibiting best practice in all aspecls of corporate governance. This statement describes the manner in which the College has due regard lo the principles sel out in the UK Corporate Govemance Code 2018. Its purpose is to help the reader of the annual report and financial slalements understand how the principles have been applied. The Boards of Directors of the College is responsible to the Board of Governors of the Ulliversty which is the sole 'member' of the corporation. The committees of the Board of Governors of the University act as Gomrnittees for the Boards of Directors of the Co118ge as appropriate. Surnmary of the Collggg'$ Structurè of Corporate Govornance The College's Board comprises of directors appointed in accordance with the Artides of Government. The roles of the Chair and Deputy Chair of the Board are separated from the role of the Principal (as Chief Execulivel. Those matters specrfically reserved to the Board for decision are set out in the Artides of Government of the College. The Board holds to itself the r8sponsibilits.es for the ongoing slrategic direction of the College, the effective and efficient use of resources and the approval of major developments and receives regular reports from senior management. The Board meets four limes a year and 15 represented at the University of South Wales Group Committees (Finance and Resources, Human Resources and Audill. In addition, a Culture. People and Value5 Committee makes recommendations to the Board on membership and the remuneration of senior manag8menl. The Finance and Resources Committee considers and advises the Board on long term financial slralegles, recommends to the Board annual revenue and capital budgets and longer term forecasls. The committee reviews and makes recommendation lo the Board Dri the annual financial statements and receives regular reports on financial performance and financial position and monitor these reports against budget. In addition the Finance & Resources Committee recommends the approval of the Financial Regulations including any finawial policies therein Iformally al Ihrefryear intervals or when signTficanl changes are madel, liquidity and the investment of surplus funds in line with that Poli¢y, and approves or recommends expenditure prowsals, contracts and grant applications in line with the Financial Regulations. Based on th8 advi¢e of the Audit and Risk Management Committee and the Principal. the Board is of the opinion that the Company has an adequate and effective framework for governaTr￿, risk management and control, and has fulfilled ils statutory ￿spOnsIbl11ty for.the effective and efficient use of resources. the solvency of the institution and the body and the safeguarding of their assets" The Company Secretary is a member ofthe FE Govemance Ne￿Ork (Wales) Group which seeks lo develop and share best practice in govemance. In the opinion of the directors, the College comFlies with all of the provSsions of the UK Corporate Governan￿ Code 2018. in so far as they apply to the frjrther and higher education sectors. and it has complied throughout the year ended 31 July 2025 and up lo the date of signing the annual report and financial statements. The College reviews, al least annually, the effeclNeness of the intemal control system. Employees Applications for employment by disabled persons are always fully considared. taking into account the iesp8Ctive aptitud8s and abilities of the applicant eoncerned. In the evenl of members of staff becoming disabled, every effort is made to ensure that their employment with the company continues and the appropriate training is arranged. 11 is Ihe policy of the company that the training, career development a￿1 promotion of a disabled person should. as far as possible, be identical to that of a person who does not suffer from a disability. Consultation with employees or their represenlalives has been undertaken, with the aim of ensuring that their views are tsken into account when decisions are made that are likely lo affect their interests. The company is a member of the University of South Wales Equalities Forum, and ils sub-groups. Communication with all employees is undertaken through lermly staff meetings, and e-mails as required.

Merthyr Tydfil College Limited Directors. report for the yoar ended 31 July 2025 (continued) PolIti￿1 Contributions The Coll&ge made no political contrit￿110ns or incU￿e￿ any political expenditure during the period12025- Nrf) Engagement with Suppllfrrs. Customers and other Business relatlonshlps The Board of Directors have a duly to promote the success of the College for the benefrt of its members, having regard lo the interests of all ils stakeholders including suppliers, customers and other business relationships. This ensures that the college maintains a reputation for high standards of Quality and business ¢onducl. The colleges, financial regulations and procedures clearly sel out the key principles for this area. Other inforniation An indication of likely luture developments in the business 2nd partlculars of signfficanl events which have occurred since the end of the financial year have been inclu(Jed in the straleglc report. Provision of inforniation to audltors In the case of each director in office al the date the direct￿. report is approved. the following applies.. lal so far as the director is aware, there Is no relevant audit information of which the company's auditors are unaware,. and Ib} helshe has tsken all the steps Ihatought to have taken as a director in orderto make himse￿ I herself aware of any relevant audit information and lo establish that the company's auditors are aware of that information. The Board of Dlrectors are reqL¢ired lo present audited financial slatemenls for each financial year. Within the terms and conditions ofthe Financial Memorandum between th8 Welsh GovernmenVMEDR and the Board of Directors of the College, the Board, through its Accounting Officer, is required lo prepare financial statements and all operating and financial review for each financial year in accordance with the Statement of Recommended Practice Accounting for Further and Higher Education, the Accounts Direelion for Further Education coll￿eS in Wales IFE and HE SORPI, UK'S Generally Accepted Accounting Principles and the Financial Reporting Stsndard IFRS 1021 which give a true and fair view of the stale of affairs ol the College and ils surplusldeficil of income over expenditur& for that period. In preparing the financi21 slatemenls. the Board is required to= select suitable atcounling policies and apply them consistently". make judgements and eslimales that are reasonable and prudenf,, "state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial staternenls.. "assess whether the college is a going concern, noting the key supporting assumplion5, qualifications or mitigating actions, as appropriate (whlch musl be consislenl with other disclosures in the accounts and audrtor's reporti" 'prePa￿ financial statements on the going concem basis unless il is inappropriate lo assume that the College will contlnue in operation" The Board is also required lo prepare a strategic repcwt in accordance with paragraphs 3.23 10 3.27 of the FE and HE SORP, which describes what il is trying lo do and how it going about IL induding information about the legal and adminislralive ststus of the College. The Board is responsible for keeping proper accounting records wh￿h disdose, with reasonable accuracy at any lime, the financial position of the College and which enable il lo ensure that the financial slalemenls are prepared in acGordan¢e with relevant legislation of incorporation. incluéing the Further and Higher Education Act 1992 and Charitie$ Act 2011,and other relevant accounting standards. 11 is responsible for taking steps that are reasonably open lo il ID safeguard ils assets and lo prevent and detect fraud aThJ other irregularities. 12

Merthyr Tydfll College Limited Directors, report for the year ended 31 July 2025 {contlnued) The auditors accept no res￿￿sIbilitY for any changes that may have occurred to the financial statements sinc8 they were initially presented on th8 website. Legislation In the United Kingdom governing the preparation and dissemination of financial slalements may differ from legislation in other jurisdictions. Dlrectors of the Board are responsible for ensuring that expenditure and income are apptied for the purposes intended by MEDR and that the financial transactions Conform lo the authorities that govern them. In addilson. they are responsible for ensuring that funds from MEDR are used only in accordan￿ with the Financial Memorandum issued by the Welsh Governrnent and any other conditions that may be prescribed from lime to time. On behalf of the governing body, the chair of the board of governors is responsible for discussing the aeeounting officerfs statement of regularity, propriety and comp4iance with the accounting Offi￿r. Diredors musl ensure that there are appropriate financial and management controls in place to safeguard public and other funds an¢J ensure they are used properly. In addition, Board directors are responsible for securing econorrtical. efricient and effective management of the College's resources and expenditure so that the benefits that should be derived from the application of public funds from MEDR and other public bodies are not pul at risk. Apwoved by order of the Board of Directors on 24 November 2025 and signed on ils behalf by.. MT lan Morgan Chair Stat•mènt of regularlty. propriety and ¢omplianG• As aocounting officer of The College Merthyr Tydfil, I confirm that the college has had due regard to the requirements of grant funding agreements and contracts with MEDR. 2nd has considered its responsibility lo notrfy MEDR of material irregulaTlty, impropriety and non-compliance with terms and conditions of funding. I confirm on behall of the college that after due enquiry, and lo the best of my krthvledge, l am able to identify any material irregular or improper use of funds by the college, or material non-compliance wth the temis and conditions of nding, under the college's grant funding agreements and contracts with MEDR, or any other public funder. I confirm that no instances of material irregularity, impropriety or funding non-compliance hav8 been dlscovered lo date. If any ins18nces are idenlrFied after the dale of this slalement. these will be notifEd to MEDR. Sign Accountlng Offlcer 24 November 2025 Statement of the Chair of Directors On behalf of the college, I confirm that the accounting officer has discussed their stalement of rewlarily, propriety and compliance with the board and that l am content that il is materially accurate. 13

Merthyr Tydfil College LFmited Slgned Chair 24 November 2025 14

Merthyr Tydfll College Limited Public Benefit Statement for the year ended 31 July 2025 Merthyr Tydfil College Limited is a registered charity in England and Wales. The registered address is Merthyr Tydfrl College, {Univer$ity of South Wales}, Treforesl, Pontypridd. CF37 1 DL and the registered number is 1140289. The members ofthe Board are dlreclors for the purposes of the Companies Act 2006 and also are the trustees of the Charity and as such have due regard to the Charity Commission's guidance on public benefit and its supplementary guidance on the advancement of education for the publi¢ benefit. Charitablo Oblectlves The College promoles the advanGemenl of education and leaming lor the public benefit.11 also provides. malnlains and Improves performance facilities for the benefit of the local community. The College is well awa￿ of rtts public benefrt responsibility and, therefore, ensures this is embedded in all of its operations lo offer fully indusive services. Fulfilment of the charitable objectives Beneficiaries The College has a student population of 2.821 Further Education students11839 on full-lime courses and 982 on part- lime courses). The primary beneficiaries are students of the College directly engaged in high-qualily training in 8 rang8 of disciplines. However, beneficiaries extend to pre-cdlege students (from the age of fourteen upwards) in addition to lo¢al employers and businesses. AdmisS￿n$ policy The College operates a flexible admissions policy and provides for individual needs in the design of learning programmes. For some programmes there are specific entry requirements which are fevieweé annually and published in the College prospectus. Burs8r1e￿sCho1arShlpS Students enrolled al the College are entitled lo apply for various support and funding in the Same way as anyone studying In further or higher edu¢ation in Wales. These are funded by the College. Students studying further education courses al the College are eligible lo apply for various means of support. The Education Maintenance Allowance is available lo students aged 16 10 19 years wlh the Assembly Leaining Grant available to students aged 19+. The Bursary grant is an allemalive means of SUPPDrt which is funded through the Colleges, Access Mnds. In addition lo the above the College also administers other initiative5 that students can access. Subsidised childcare facilities. free meals and transport allowances are available along with financial support for educational visits and study aids. Higher educalion students have access to alternative methods of support. The Assembly Learning Grant or the Higher Education Fee Waiver can be applied for depending on individual circumstances. There are also funds available for HE student5 in financial hardship. The College provides sludenl support and guidance on the application process. ￿￿enIng PartKipal￿? The College provides a wide range of programmes for learners from the age of 14 years. Many leamers are a￿e to acces5 grant support as a means of tackling social exdusion. In terms of community provision, the College offers a wiée range of accredited programmes that are delivered through partnership working with the local county borough council. Likewise, many family learning programmes are offered in community venues on an annual basis. Communily Engagement The College offers other facilities which are accessible to students, staff and members of the community. A large sports hall is available for hire along with various sporting equipment. The College facilities are charged at subsidised ralos to ensure their accessibility to all. 15

Merthyr Tydfil College Limited Public B•nefit Statomont for the year ènded 31 July 2025 (continuad) Equality College staff are an equally diverse body of people wtth drft8renl perspectives. values attitudes. The College seeks to promote an inclusive environment where such differences are shared aThl valued, and where any unfair treatment or discriminalion is Challenged and eliminated. The University of South Wales Group Strategic Equality Plan 2024-28 sets out our response to the requirements of the Equality Act 2010 {Slalulory Duliesl (Wales) Regulations 2011. This plan presents a dear commitment lo not only comply with equality legisl2lion. but also lo ensure that all those who w(Kk or study al the College are Irealed wilh respect and that diverse needs are taken into consideration and responded lo. This commitment lo equality and diversity is even more important during this current dimate of economic Ltncertainty and substantial change lo Ihe education sector. This is a lime when It is essential lo ensure that sleps lo ensure equality of opp(xtunity in education and work are put in pre￿ and actions are prioritised where they are most needed. In the case of each director in office at the dale the directOTS' report is approved, the following applies- lal so far as the trustee is aware, there is no relevant audit inforniation of which the charitable company's auditors are unaware- and Ibl he has laker¢ all the steps that he ought lo hav8 taken as a trustee in order lo make himself 8W8re of any rethnl audit information and lo establish that the charitable Company's auditors are aware of that information. 16

Merthyr Tydfil College Limited INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MERTHYR TYDFIL COLLEGE LIMITED REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Oplnlon We have audlled Iheflnancial 51atemenlg of MerthyrTydfil College I'lhe College") for the year ended 31 July 2025 which comprise the Income and Expenditure Account. Statement of Changes in Reserves, Balance Sheet. Cash Flow Statement, and notes lo the financial statements. including a summary of significant accounting policies. The financial reporting fram@work that has been applied ir¢ their preparation is ap￿ICable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Fir)ancial Reporting Standard applicable in the UK and Republic of Ireland Iuniled Kingéom Generally A￿epted Accounting Practjcel. In our opinion, the financial stslem8nls: give a tru8 and fair view of the slate of the College's affairs as at 31 July 2025 and of the College's nel movement in funds, ir)cluding the income and expenditure, for the year then ended,. have been properly pfftpared in accordance with United Kingdom Generally Accepted Accounting Practice,. a￿1 have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilib.es under those stsndards are further described in the Audilorfs responsibilities for the audit of the financial statements section of our repcKt. We are irKlependent of the College in accordan￿ with the ethical requirements that are relevant lo our audit of the financial statements in the UK. including the FRC'S Ethic81 Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtsined is sufficient and appropriate to provide a basis for our opinion. Conclusions relating lo going concern In auditing the financial statements, we have concluded that the dire¢tor$' 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 idenirfEd any material uncertainties relating to events or conditions that, ir)dividually or collectively, may cast significant doubl on the College's ability lo continue a5 a going concern for period of al least ￿e1ve months from when the fin?ncial slalements are aulhorised for i55ue. Our responsibilities and the reswnsibililies of thg directors with respect lo going concem are described in the relevant sections of this report. Other infr)rmalion The directors are responsible for the other infom)alion. The other information comwises the information induded in the Directors, Report. Our opinion on the financial statements doe5 not cover the other information and. ex¢epl to the extent otherwise explicitly staled in our report. we do not express any form of assurance conclusion Ihereon. In ¢onneclion with our audit of the financial slalements. our responsibility is to read the other information and, in doing so. consider whether the other information is materially Inconsistent wilh the financial stslements or our knowledge obtained in th8 audit or otherwise appears to be materially misstated. If we idenltfy such material inconsistencies or apparent material misslatemenls, we are required lo determine whether there is a material misslalemenl in the financlal slalements or a material misstatement of the other information. If, based on the work we have performed, we conclude that ther8 is a material misslatemenl of this other informalKJn, we are required lo report th81 fact. We have nothing lo report in this regard. Opinions on other matters prescribed by the ComparTries Act 20¢ In our opinion, based on the work undertaken in the course of the audii.. the information given in the Directors, Rep￿t (which includes the strategic report prepared for the purposes of company law)forthe financial yearfOrWh￿h the financial statements are tKepared is consislentwith the financial sl8lements'. an the Directors, Report has been prepared in accordance with applicable legal requirements. 17

Merthyr Tydfil College Limited INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MERTHYR TYDFIL COLLEGE LIMITED (continued) Matters on whi¢h we are required to report by oxceptlon In the IwJht of the knowledge and understanding of the College and Its envlronment obtained in Ihe course of the audit, we have not idenlrfied material misststemenls in the Dire¢lors' Report {wh￿h incorporates the directors, report). We have nothing to report in respect of the following matters in relation to ￿lCh the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accountin9 records have not been kept by the College., or the College financial sl8temenls are not in agreement wllh the accounting records and returns.. or certain disclosures of directors, remuneration specrfied by law are not made,. ( we have not received all Ihe informalion and explanations we requlre for our audit,. or the directors were not entitled to prepa￿ the financial statements in aceordance with the small companies. regime and take advantage of the small eomp8nies' exemptions in preparing the directors, report and from the requirement to prepare a strategic report. Responsibilities of directors for the flnancial statements As explained more fully in the directors, responsibilities ststement sel out on page 12. the directors (who are also the directors of the College lor the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true anij fair view, and for such internal conlrd as the directors determine is necessary to enable the preparation of financial statements that are free from materlal mlsstslement, whether due lo fraud or error. In preparing the financial stalemenls. the directors are responsible for assessing the College's ability to continue as a going concern, disclosing, as applicable, mallers related lo going concern and using the going Concern basis of accountsng unless the directors either intend lo liquidate the College or lo cease operations, or have no realistic alternatwe bul to do so. Audrto¢s responsibilities for the audit of Ihe financial statements Our objectives are to obtain reasonable assurance about whelher the financial statements as a whole are free from material misstatement, whether due lo fraud or error, and to issue an auditor's reFk)rt that Includes our opinion. Reasonable assurance 15 a high level of assurance, bul is not a guarantee that an audit condLJcled in accordance with ISAS {UKI will always det￿1 a material misstalemenl when il exists. Misslalemenls can arise from fraud or error and are considered material rf, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial slalemenls. Irregularit￿8. induding fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misslalements in respect of irregularities, including fraud. The extent to which our procedLirgs are capable of detecting irregularities, including fraud is detailed below.. Ba$ed on our understanding of the College and the environment in which it operates, we cor)sidered those laws and gulations that have a direct impact on the preparation of the financial slatemenls such as the financlal reporting legislation for further education including the Accoun15 Direction for Further Education Colleges in Wales issued by Medr. Companies Act 2006 and the Charities Act 2011, and other factors such as taxation and penslons legislation. We evaluated managemenys incentives and opportunrties lor fraudulent manipulation of the financ￿1 statemen15 (including the risk of Overr￿Se of conlrols). Audit procedures performed by the engagement team included.. Inspecting correspondence with regulators and lax aulhoriÉies', Diseussions with management including consideration of known or suspected instances of non-compliancewith laws and regulation and fraud., Evaluating management's controls designed lo prevent and delect irregularities.. Identifying and tesling journals,. and Challenging assump1k￿$ and judgements made by management in their accounting eslimales 18

Merthyr Tydfil College Llmited INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MERTHYR TYDFIL COLLEGE LIMITED {continued) Because of the inherent limitations of an audit. there is a risk that we will not detect all irregularities, induding those leading lo a material misslalemenl in the financial statements or non-compliance wrlh regulation. This risk increases the more Ihal compliance with a law OT regulation is removed from the events an¢J Irgn5aclions reflected in the financial slalements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due lo fraud rather than error, as fraud involves intentional concealment, forgery, collusion. omis5i0n or misrepresentation. A fijrther description of our responsibililtes for the audit of the financial statements is located on the Financial Rep)rting Council's website at.. W4tyW.frc.Org.u￿a￿dl1O[sreSP0nsibIlities. This descripts'on forms part of our auditols report. Rèport on other legal and regulatory roquirements We are required lo report on the following matters under the Further Education Audit Code of Practice 2015 leffeclive 1 August 20141 I'the Audit Code of Practice'l issued by the Welsh Government under the Learning and Skills Act 2000. The regulation of the Welsh Further Education sector was transferred from the Welsh Government lo Me(Ir, the commissh￿ for Tertiary Education and Research on l August 2024. The Audll Code of Practice ané Financial Memorandum Management Code iSSLJed by the Welsh Government remain in place al the dale of our rewrt. In view of this transfer, any reference lo Medr in our report should be read as also referring lo the Welsh Government. In our opinion, in all material respects.. monies expended out of Welsh Government grants, including those remrtted by Medr. and other funds from whatever sourc8 administered by the College for specrfic purposes have been property applied to Ihose purposes and, rf appropriate, managed in compliance with all relevant legislation., furKling received from the Welsh Government and Medr land other bodies and restricted funds where approprrdtel has been applied in accordance wilh the Financial Memorandum betr￿￿ the Welsh Government and further education inslitulions,. and the financial slalements meet the requirements of Medr'$ 2024125 Accoun15 Direction. Usg of our report This report is made solely lo the College's members, as a body, in aixordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate to the College's members those matters we are required lo slate lo them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibilty to anyone other than the College and the College's memb8rs, as a body. for our audit work. for this report. or for the opinions we have formed. Steve Harper (Senior Statutory Auditor) For and on behalf of Haysmac LLP. Slalutory Audit Dale.. 2811112025 10 Queen Street Place London EC4R 1AG 19

Merthyr Tydfil College Limited Company Reglstration No. 6671721 Income and Expenditure account for the year ended 31 July 2025 2025 2024 rooo £'ooo Income Funding body grants Tuition fe8s and education contracts 16,680 750 14.893 810 Other Incoma 1,215 1.373 519 Investment IncA)me 15Total Inwm• 19,136 17.595 EX￿n<￿tUrn Staff costs 11A89 4,817 1.43S 112) 17,729 1Q,648 4.098 Other operatirrfJ expens88 Depreriation and Amortisallon Interest and 0th8rfin8nce costs 9+10 Total expènditure 16,238 Surplus forth• y•ar 1,407 1,357 Aduarial110gsllgain in respeGI of rKnsion ¥￿MeS 18 1621 1281 Totsl comprehens￿ InconMll•xp8n8è) 1,329 The accompanying notes on pages 27 10 39 are an integral part of the Financial Statements. 20

Merthyr Tydfil College Limited Statement of Changes in Reserves for the year ended 31 July 2025 £'ooo I&E and P•n$lon £'ooo Other eooo Total Ro88rve Balance at 1 August 2024 12.272 2.168 14,440 Surplus for the year 1,407 1,407 Other ¢ompreh8nsive income 162) {621 Totsl comprehensive income for the year 1,345 1,345 Balance at 31 July 2025 13,617 Z168 15.785 The company is limited by guarantee and compris8s one Mern￿r. The a¢companying notes on pages 27 to 39 are an integral part of the Financial Statements. 21

Merthyr Tydfll College Limited Company Registration No. 6671721 Balance sheet as at 31 July 2025 2025 2024 £'ooo Non-current assets Intangible assets Fixed assets 10 25.607 26.248 Current assets Stcck Trade and other receivables Investments Cash and cash equivalents 12 14 381 6,461 9,427 16,283 12 326 6,790 17,018 Credltors.. amounts f?Iling due wilhin one year Net current as8at8 13 {4,774) 12.244 15.024> 11,259 Total assets1088 current liabllltles 37,858 37,529 Crgditor$: amounts falling due after more than one year 14 (21,563) (22.523) Provlslons Pension provisions 15 (510 (566> T￿al net assets 15,785 14,440 Unrestrl¢ted Reserves 15,785 14,439 Total Reserves 15,735 14,440 The &(x)mpanying notes on pages 27 10 39 are an integral part of the Financial Stslemenls, were approved and aulhorised for issue by the Board of Directors on 24 November 2025 and were signed on ils behalf by: Mr lan Morgan Chair 22

Merthyr Tydfil College Limited Cashflow Statement forthe year ended 31 July 2025 2025 £'ooo 2024 £'ooo Cash flow from operating a¢tivltles- Surplus for the year 1,407 1,357 Adjustment for non-cash itgms Oeprecialion Amort154tion of intangibles Decrease in stock Decrease in debtors Decrease in creditors LGPS penslon costs less contributions payable 1,420 16 1,471 332 1513) 1118) 1641 } 1821 Adjustments for Investing a¢tivltles Investment income Release of capital grants Ngl Cash inflow from operating activities 1491) {1,1991 578 15181 {1,199) 7S3 Cash Ilows from Investing artivities Transfers from cash to investments Capital grants receipts Inve51menl income Payments made to aGquir¢ fixed assets Net cash Inllowl {outtl¢)w) from investing actlvlti•s 1329) 524 {3861 331 518 (477) 114) {8011 {1151 Increasel{Decrease) In Gash and cash equivalents in year 739 Cash and cash equivalents at beginning of the year 8,688 Analysls of Cash and cash oquivalgnts at end of the year Short term dep)sils Cash at bank and cash In hand Cash and cash equlvalents at the end of the year 15 11 9,416 9,427 9,875 9,8 The accompanylng notes on pages 27 to 39 are an integral part of the Finarscial Slaements 23

Merthyr Tydfil College Limited Accounting policles Bas1$ of Preparatlon These financial statements have been prepared in accordance with the Statement of Recommended Practice (SORPI.. Accounting for Further and Higher Education 2019 (the 2019 FE HE SORP} in accordance with the Financial Reporting Standards IFRS 1021 and the Charities Act 2011. The College is a public benefit enlily and therefore has applied the relevant public benefit requirements of FRS 102. The financial slatemenls are in accordance with the historical cost ¢orwentKIn. The Financial statements of the subsidiary Tydfil TrainirvJ Consortsum are not consolidaied at College level bul al Group level, the Universty of South Wales Going Concern The financial statements have been prepared on a going corrEm basis which the directors wllsider lo be appropriate for the following reasons. In assessing whether the going concem basis is appropriate the Directors have considered the coll￿e'S expected future cash flows and are satisfied that the College has adequate Tesources lo continue in operational existence for a minimsjm of 12 months from the dale of the signing of the financial statements. The directors therefore continue lo adopt the going concem basis in preparin9 the annual financial stalemenls. Recognltlon of In¢ome Funding body granls are accounted for in the year lo which they relale. Tuition fee income Ss credileé to the income and expendilure a￿OUnt over the period in which students are slutjying. Recurrent Income from grants, contracts and other services rendered are accounted for Dn an accruals basis and included to the extent of the Completion of the contract or service concerned,. any payments rèceived in advance of such performance are r8cogni5ed on the balance sheet as liabilities. Non-recurrent grants received in respect of the acquisition or construction of lixed assets are treated as deferred capttal grsnls. Such grants are credited lo deferred capital grants and an annual transfer made to the income and expenditur8 account over the useful economic1rf8 of the asset, al the same rale as the depredation charge on the asset for which the grant was awarded. Ir￿rne fr¢m the sale ofgoods or Services is credited lo the incLsme and expenditure accour)I when the goods or services are supplied lo the external customers Dr the term5 of the contract have been satisfied. Investment income is credited to the income and expenditure account on a receNable basis. Pension schemes Retirement benefits for employee5 of the Company are provided by the Teachers. Pensions Scheme Agency ITPS} and th8 Rhondda Cynon Taff Pension Fund (RCTPF). a Local Government Pension Scheme ILGPS). RCTPF is a defined benefit scheme which is externally furKJed and conliacted out of the State Earnings Related Pension Scheme. The discount rale used lo calculate the liability has increase¢J by 0.70¥0. As a result of this Increase and inflation rates, the future surplus in the RCTPF has increased from £2,570k in 2023124 10 £5,2460k In 2024125. The 2023 valuation reported that the Colleg8 still has a legal obligation lo make contributions to the fun(J. therefore the College has adopted the accounting standard IAS 19 to report pension surpluses. Following the cal¢ulalion to adopt the IAS 19 approach the net present value of thefuture contributions ￿lating lo benefit accrual exceeds the nel present value of future service costs, measured over the remaining future work lifetime of the active employees. As a result of this. surpluses will be capped at nil across the USW Group. This approach will note that the valug of the nel assets wll not exceed the value of the Ilabililles and will report a nil balance on the balanco sheet. 24

Merthyr Tydfil College Limited Accounting policles (continued) Followlng the calculation to adopt the IAS 19 approach the net present value of future contributions relating lo benefit accrual excee(Is the net present value of future service cosls, measured over the remaining fulure working lifetime of the 2Ctive employees. As a result of this. the surplus will be capped al nil across the Group. It has not been possible to identify the institution's share of the TSS scheme and as such they are accounted for as if they were defined contribution schemes. Early Retirement Provislon The Company maintains a provision to meet pension costs arising from the additional years of service granted to certaln staff kking early retirement. Provisions a￿ established and the associated costs are charged lo the income and expenditure account when the College has a legal or constructive obligation. The provision relates to enhanced teachers, unfunded pension arrangements established by the College. These are termination benefits made on a discretlonary basls up)n early fell￿men( in respect of the Teachers. Pens￿ Scheme. Employment Benefits Short term employmgnl benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render service lo the College. Any unused benefrts are accrued and measured as the additional amount the College expetsts to pay as a result of the unused entillemenl. Operating L8as8s Rentals paid under operating leases are charged lo the income and expendtture account on a slraight-line basis over the lease term. Forelgn currency Transactions in foreign currencies are translated at the foreign exchange rale ruling al the date of the transaction. Monetary assets and liabilities denominated in forewJrTr currencies al the balance sheet dale are translated al the foreign exchange rate ruling al that dale. Foreign exchange differences arising on translation are recognised in the Surplus or Deficit. Taxation Status The Colleg8 is a registered charity within the meaning of Chapter 1, Section 3 of the Charities Ael 2011 and as such is a charity within the meaning of Section 6 to the Finance Act 2010. Accordingly, the College is polenllally exempl from Isxalion in respecl of inwme or caprtal gains received within categories covered by section 478- 488 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Tax 1992, to the exlenl that such income or gains are applied exdusNely to charitable purposes. The College is partially exempl in respect of Value Added Tax, so that il can only recover a minor element of VAT charged on inputs. Irrecoverable VAT on inputs is induded in the wst of such inputs and added lo the cost of tangible fixed assets as appropriate, where that inputs themselves are tangible fixed assets by nature. Intangible assets Intangible assets which comprise So￿are are am(*iised over 4 years representing Ihe estimated ecor¢omic life of the asset. Each year the assets are reviewed for indicators of impairment and where idenlrfied full impairment review is carried out and reflected in the financial accounts. 25

Merthyr Tydfil College Limited Accounting policies {continued) Tangible Fixgd Assets Tangible fixed assets are recoréed at purchase cost. induding non-recoverable VAT, incidental costs of acquisitlon, less accumulated depreciation and accumulated impairment losses. Each year Ihe assets are reviewed for indicators of impairment and where identtfied full impairment review is carried out and reflected in the financial a¢¢ounts Depreciation is provided on all tangible fixed assets al rates calculated lo write off the cost. less estimated residual value of each asset. evenly over ils expected useful life. as slated below. The principal rates used for this purpose are.. Buildings Fixtures and fillings Plant and machinery up to 50 years Straight line t*￿een >25 years straight line be￿een &40 years straight line Land 15 not depreciated Assets under construction represenl Ihe cost of purchasiro, constructing and installing tangible fixed assets ahead of their productive use. No deprecialiorb is charged on assets unts con5tfUCtion until they are transferred lo the appropriate asset heading when they are brought into use. nd and buildin The freehold interest in land and bU￿dingS is included in the balance sheet al cost. Land and buildings aCqui￿d, buildings constructed or building refurbishments undertaken during the year, are included at cost less depreciation. Finants costs directly attributable to the construction of fixed assets are capSlalise¢J as part of the ¢o$t of those assets. Assets Financed b Ca ital Grant or Donations Where r￿ed assets are acquired with the aid of specrfic grants and donations. they are capitalised and depreciated as above. The related grants or donations are credited lo deferred capital grants and are ￿leaSed lo the income and expenditure account over the expected useful economic lrfe of the related asset on a basis consistent with th& depreciation poliw. Cash and cash 8quivalent8 Cash includes cash in hand, deposits repayable on demand arKI overdrafts. Dep05ils are repayable on demand if they are in practice available within 24 hours without penalty. Cash equivalents are short term, highly liquid investments that are readily ￿nVertible to known amounts of cash with insignificant risk of a change in value. Reserves The college is aware of the need to secure ils viabilrty beyond the immediate future. The college recognises the importance of reserves in the financial stability of any organisalion and ensures that there are adequate reserves to support its core a¢livilies and lo invest for ils future needs. The reserves which the college retains can be categorised as follows.. Capital ReseNes- To provide funds to meet the current and future capital spend requirements. Strategic Reserve- To rneel the cost requirements of strategic inilialives as per the college strateglc plan 11 is the colleges intention to continue lo increase reserves through the generation of annual operating surpluses Other reserves arose on incorporalion and represent the assets and liabilities Iran5fefred from the University of South Wales, with the addition of £197k revaluation of Land and Buildings on 1£t August 2014. Financial Contingency Fund The FCF was first introduced in 1991 to support FE and HE students who faced financial difficulties snd who, wiihoul support, were likely to leave their education. The Welsh Government makes available annual FCF monies to Individual institutions lo administer lo their students on a di$eretionary basis_ For this purpose the College acts as an agent. 26

Merthyr Tydfil College Limited Accounting policies {contlnued) Stocks Slottks are valued at the lower of cost and net realisable value. Provisions ProvlsKtns are recogni5ed in the financial slalements when '. lal The College has a present obligation (legal ￿ constructive} as a result of a past event,. (b) It is probable that an oufflow of economic ttnefils will be required lo sellle the obligation,. and (c) A rellat￿e estimate can be made of the amount of the obligation. A contingent liability aTises from a past event that gives the College a possible obligation whose existence will only be ¢onfirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the College. Conlingenl liabilities also arise in circumstances where a provision would otherwise be made bul either il is not probable that an outflow of resouTce5 will be required or the amount of the obligation cannot be measured reliably. A contiroent asset wises where an event has taken place that gives the College a possible asset whose existence wll only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the College. Contingent as891s and liabilities are not recognised in the Ba18nce Sheet but are disclosed in the r￿les. U$e of estimates and judg8ments The preparation of Financial Statements requires management to make judgements, eslimales and assumptions that affect the application of accounting policies and the rerM)rted amounts of assets, liabiltties, income and expenses. Actual results may differ from these eslimales. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions lo accounting estimates are recognised in the period in which the estimate is revised and in any future periods. The LGPS 2022 valuation reported that Merthyr College still had a legal obligation to make ￿￿trIbut￿n5 to the fund, therefore Merthyr College adopted thè accountiw standard IAS19 lo report on Pension surpluses. This approach will note that the value of Ihe nel assels will not exceed the value of the liabilities and will report a nil balance on the balance sheet. 27

Merthyr Tydfil College Limited Notes to the financial statements for the year ended 31 July 2025 Tuition fees and •du¢atlon contracts 2025 2024 £'ooo £'(K)o Full-time home and EU students Part-lime students 160 750 810 Funding body grants 2025 2024 Government Recurrent grarrt Specific Government grants Release of capital grants 14,190 1￿07 1,183 16.680 12,174 1,520 14.893 Other Incomo 2025 2024 £￿00 385 European Projects Nursery Miscellaneous 470 383 347 447 556 1,215 1,373 Staff costs 2025 2024 £'ooo £'ooo .314 1.237 1.938 11,489 Salaries Social security cnsts Other pension costs 1,166 1,634 10,648 2025 2024 rooo rooo Emolumen15 of the Principal l Accounting OffKer Salary Pensions 139 132 33 165 40 179 2025 2024 £'ooo Emoluments of the Staff Director Salary Pensions 20 47 12 26 59 28

Merthyr Tydfil College Limited Notes to the financial statements for the year ended 31 July 2025 Other than the Prlncipal and Staff Director there are oiher ￿M￿nerated dtrectors Remuneratlon of the Prlnclpal expressed a5.. 2025 2024 4.17 Basic salary as a multiple of the median basic $21ary of all staff Total remuneration as a multiple of the median total renumeration to all staff (All full lime and part lime staff bul excluding agency workers) 4.44 Senior staff who fall outside of the national pay spine and incremental scale, is considered by the Culture. People and Values Committee ICPVC). The CPVC mel on 16th June 2025 with the recommendations ratified by the College BoaTd of Directors al their meeting of 7th July 2025. The College Board in agreeing the Principal's remuneration considers a range of information which includes bench marking lo other Welsh instilulions, UK inslilulions, inslilulions of a comparable size and institutions wtth similar missior)s. The Board is also cognisant of wider inslilutional financial and academic performance, spectFically annual reports of CP15. The CPVC is also informed by the Vice Chancellor of their appraisal of Indlvidual performance as it relates to inslilutional performance. The Principal is the highest paid member of staff. Remunerallon of higher paid staff: excluding ernpksyer's pension Contribut￿nS 2025 2024 Number Number £60,000- £65,000 £65,000- £70,000 £70,000- £75,000 £75,000- £80.000 £80,000- £85.000 £85,000- £90.000 £90.000 - £95,000 £95,000- £100,000 £100,000- £105,000 £105,000 - £110,000 £110,000 - £115,000 £115,000 - £120,000 £120,000- £125.000 £125.000- £130,000 £130.000- £135,000 £135,000- £140,000 £140.000- £145,000 £145.000 - £150,000 £150,000 - £155,000 £155,000 - £160,000 Key management personnel Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College and are the Same individuals as those iwluded in the higher paid staff table above. These comprise the Principal, Vice Principal Resources and the Vice Principal Academic. Vice Principal salaries a￿ on a fixed point and are refflective of their pos11ion arKI responsibilities. 2025 £'ooo 2024 £'ooo Key management personnel compensation Salary Pgnsiorn contribut￿nS 323 379 352 29

Merthyr Tydfil Colloge Limited Notes to the financial statements for the year ended 31 July 2025 (continued) Atypical Staff 2025 £'ooo 2024 £'ooo Agency Staff Relirgment benefits are accruing to 94 employees under a defined benefit scheme. (Retirement benefits 2024 were also accruing for 94 employees). The monthly average number of employees by headcounl linduding senior posl-holdersl by major category durir@ the year was as follows.. 2025 2024 Number Numbèr 141 Academic Management & specialist Techn￿1 Other 139 27 222 227 The monthly 8verage number of employees by FTE (including Senior po5t-holders) by major category during the year was as follows.. 2025 2024 Number Number Academic Management & specialist Technical 150 23 Other 35 212 37 216 Diractors expgnsgs and related party transactions No expenses were paid lo directors during the year 2025120243- nill. No Director or other person related to the College had any personal interest in any contract or transaction entered into by the College during the year. Sgvorance Paym•nts The college paid S severance payments in the year, disclosed in the fdlowing bands.. £0 - £25,000 £25.001 - £50,000 £50,001 £100,000 £100,001 - £150,000 £150,000 + Included in staff restructuring costs are special severance payments lolalling £60,433.94 {2024= £45,4951- Individually. the payments w8¥e= £21,486.30 {Conlraclual £21,386.30k}. £8,145.40 (Contractual £8,145.40). £1.289.94 {Contractual £1,289.94), £27,755.601£27,655.60 Contractuall and £1.756.70 (Conlraclual £1,756.70>- 30

Merthyr Tydfil College Limited Notes to the flnanclal statements for the year ended 31 July 2025 Icontinued) Trado Union Facility Time Number of employees who were relevant union officia15 during the ￿rIOd Full-time equivalent employee number 0.2 FTE Total cost of facility l¥ne Total pay bill Percentag8 of pay bill spent on fa¢lllty time £11,439 £11.488,692 0.10% Time Spent on paid trade unlon activities as a percentage of total paid facility lime Intgrest and o¢herfinance costs 2025 £'ooo 2024 £'ooo Net charge on pension 5¢heme (121 {121 Analysis of expendfture by activity 2025 2024 £'ooo £'ooo Academic and related expenditure Administration and central seNices Premises {including service concession costs) Residences, catering and conferences Other expenses 11.054 2.682 2.514 8,733 2,326 2.194 1.413 17.740 15,712 Other operating expenses Induded: External aLKlilor's remuneration in respect of audit servi(*s External auditor's remuneration in re5pe¢l of non•audit services 26 25 Operating Lease rentals L8nd & Buildings Othar 95 31

Marthyr Tydfil College Limited Notes to the flnanclal statements for the year ended 31 July 2025 (continued) 2025 2024 10. Intangible assets Software Cost Opening balance Additions in year Closing balance 300 300 Accumulatod Amortisatlon Opening balance Charge for the year Closing balance Net book value 278 246 16 294 32 278 11. Fixed assets Freehold Land and Buildings Fixtures Fittings Equipmènt £'ooo Assets under Construction Total £'ooo £'ooo At 1 August 2024 Additions 31,323 5,762 715 37,123 779 At 31 July 2025 31,323 6,477 102 37.902 Accumulated depreciation Al l August 2024 Charge for Ihe year 6.949 3.926 826 10,875 1.420 At 31 July 2026 4,752 12.295 Net book value At 31 July 2025 23,780 1.725 102 25,607 At 31 July 2024 24.374 1.836 26.248 32

Merthyr Tydfil Collogo Limited Notes to the financial statements for the year ended 31 July 2025 (continued) 12. Trado and olhgr rKeivables 2025 £'ooD 2024 £'OOD Tr￿je receNables Other receNables Prepayments and accrued inwme Amounts owed by group undertakings 32 113 221 16 11 Amounts due from group undertakings are unsecured, free from interest and payable on demand. 13. Credltors: amounts falllng due within ong year 2025 2024 Trade payables Amounts owed lo group undertakings Deferred Government Capital Grant Social security and other taxation payables Accruals and deferred income 209 167 215 1,150 578 124 1,150 2,623 4,775 3,237 5.024 Included within deferred income is deferred capital govemmenl grant inGome of £Ok12024.. £Ok) and deferred revenue government grant income of £1093k {2024. £1,809kl Amounts due lo group undertakings are unsecured. free from interest and payable on demand. 14. Cr•dltors: amounts falling dug after mor• than one year 2024 2023 £'ooo Deferred Government Capital Grant 21.563 22,S23 33

Merthyr Tydfil College Limited Notes to the financial statements for the year ended 31 July 2025 {continued) 15. Provisions Pension Provlslons Pension enhan¢omont on tomilnatlon Defined Benefit obligation (gee Note 16) £'ooo Total £'ooo £'OOD Cost Al 1 August 2024 Ulilised in year Additional provision At 31 July 2025 {561 {56) 510 510 16. Loase obligations Total rentals payable undor op*ratlng leases: 2025 Land and Plant and Tolal Buildings Machlnery £'ooo £'OOD 2024 Totsl £'ooo £No Payable during the year 95 Future minimum lease payments the.. Nollaler than 1 year Later than 1 year and not le5S than 5 years Later than 5 years Total l•ase payments due 17. Related party transactions The College is a wholly-owned Subsidiary of the University of South Wales, and is included in the consolldated flnancial statements of the University of South Wales, which are publicly available from University of S(xJlh Wale5. Pontypridd, Rhondda Cynon Taff. CF39 10L . Due to the nature of the College's operations and the composition of the Board of Director5 (being drawn from local public and private sector organisations), il is likely that transactions will tske place with organisations in which a member of the Board of Directors may have an interest. All transactions involving organisalions in which a member of the Board of Directors may hold dual directorship have been assessed and would not fall under the category of related party transaction. Other than those disclosed elsewhere in the financial slatemenls. no transactions were idenlrfie¢J whith would b8 disclosed under FRS102 Related Party Dtsclosures. 34

Merthyr Tydfil College Limited Notes to the financial statements for the year ended 31 July 2025 (contlnued) 31 July 2025 31 July 2024 Organlsatlon Expendlturo £'ooo Credltor £'ooo Expendltur• £'ooo Credltor £'ooo The University of South Wales 347 USW Services Ltd 365 USW Commercial Service5 Tydfil Training Consortium 110 131 113 18. Pensions The Company participatey in two pension schemes, the Rhondd8 Cynon Taff Pension Fund IRCTPFI for non-a¢adernic stsff, and the Teachers, Pension Scheme {TPS) for academic staff. The assumptions made are detailed within thi5 note. Thefe have been two Gourt cases thal effect the LGPS defined benefit scheme. They relate lo Ihe guaranteed minimum pensions eqLJali$ation {GMPsl and age discriminab'on (Mccloudl. The impaGI of these cases are still uncertain, but following actuarial advi￿. a provision has been included as part of the assumptions in this note. Teacherf8 Pension Scheme The Te8chers' Pension Scheme is a conlrlbulory'sector-wide. scheme for academic staff administered by the Teachers, Pension Agency on behalf of the Department for Education ané Skills. The scheme, which does not have a fund bul instead operates on a 'pay-as-you-go' basis. is subject to actuarial valuation Èvery five years for the purpose of determining Ihe"seclor-wKle" contribution rates. The latest actuarial valuation of the scheme was as at 31 March 2016. The cost of pension increase5 is currently excluded from the valuation and neither employees nor employers contribute to this added value to the employee, which is mel directly by the Exchequer. The conlribulion rate during the year was 28.680A fron) August 2024 to July 2025. 11 is not possible to identify each institution's share of the underlying assets and liabilities of the scheme and hence contributions to the scheme are accounted for as if il were a defined contribution scheme. The cost recognised within the Income and Expenditure account of £1,41 Ok, (2024 £1.079kl is equal lo the contribut￿S payable lo the scheme for the year. Rhondda Cynon Taff County Borough Coundl Penslon Fund Funding Valuation This scheme provides benefits for non-academic staff based on final pensionable salary. The scheme is valugd every three years as required under Regulation 7711) of the Local Govemment Pension Scheme Regulations 1997 ISI 1997 No. 16121. The latest valuation was undertaken by Independent consulting aGtuaries as al 31 March 2022.Under the definitions set out in FRS 102, the Local Government Pension Scheme 15 a multi employer defined benefit pension scheme. In the case of the LGSS, the actuary of the scheme has identified the Institution's share of ils assets and liabilities as at 31 July 2025. In resFX)nse to the ongoing reform of RPI the actuary have changed their approach lo setting the CPI assumption.. an increase in the Inflation Risk Premium and a reduction in the long-term drflerence between RPI and CPI. The combilled impact ol Ihis change is a ¢ir¢a £2.2m increase lo the defined benefit obligation at 31 July 2025 The College employs a building block aPFxoach in determining the rale of return on Fund Assets. Historical markets are studied and assets with higher volatility are assumed lo generate higher returns consislenl with widely accepted capital market principles. The assumed rate of return on each asset class is sel out wlhin this note. The overall expected rale of return on assets is then éerived by aggregating the expected relum for each asset class over the actual asset allocation for the Fund as a131 July 2025. 35

Merthyr Tydfil College Limited Notes to the financlal statements for the year ended 31 July 2025 (continued) FRS102 In accordance with the requirements of Financial Reporting Standard 102, the independent consulling actuaries updated the results of the March 2022 actuarial valuation in order to ascertain the valuation of the 5ub-fund$" in the scheme al 31 Juty 2025. The principal assumptions used by the actuary in this respect were'.- 2025 2024 2023 Dlscount rate l interest income on assets 5.70 5.00 5.10 General increases in pensionable salaries 3.65 3.70 3.85 CPI pension increases 2.65 2.70 2.85 The current mortality assumptions include an allowance for fvlure Improvements mortality rates. Assumed lrfe expectations on retirement today and al age 65 are:. 2025 Number 2024 Number Rotlrlng Today: Males Females 23.2 23.1 Retlring In 20 years: Males Femaes 21.5 24.3 21.1 24.2 Th• asset$ in the scheme are valued at fair value and comprise.. 2025 £'ooo 2024 Equities Govemmenl bonds Corporate bonds Property Oth Cash 12,794 2,182 2,996 1,212 577 77 19.838 12.186 2.124 2.809 1,154 18,665 Anatysis of amounts shown in the balance she 2025 £.￿0 2024 £'ooo 2023 2022 £'ooo 2021 £'o Eslimated share of assets 19.838 18,665 16,858 16,241 18,113 (18.6651 116.8581 118,7711 126,982) Present value of scheme liabiliiies (19.8381 Deflclt In the scheme- not pgn5ion liabilltles 12,5301 18,869) 36

Merthyr Tydfil College Limited Notes to the financial statements for the year ended 31 July 2025 (continued) 2025 £'ooo 2024 £'ooo Analysis of tho amount ¢harged to staff costs within tho oporaling surplus Current service cost Past service cost Analysis of the amount Gharged to Interest payable and similar charges 2025 £'ooo 2024 £'ooo Interest income on assets Interest on pension scheme liabilities 18031 791 {8101 798 Nel charge (12) 1121 Analysls of amount reGogni$¢<l in other comprehensive Income 2025 £'ooo 2024 Actuarial gain on assets Changes in assumpllons underlying the present value of scheme liabilities Experience10ss on liabilities 401 826 742 782 (1.2051 11,6361 Actuarial gainl{lossl re(x)gnised in other comprehensive Income (621 (281 Movement in deficit during the year 2025 2024 £'ooo 1 August Current service ￿51 Contributions Admin Past service c051s other finance charge Actuarial (lossygain [phone] 446} 476 {14} 12 (62) 12 (281 31 July 37

Merthyr Tydfil College Limited Notes to the financial statements for the year ended 31 July 2025 (continued) Analysis of the movement in tha pr•sant value of schem• liabllltles 2025 £'ooo 2024 £'ooo Opening present value of liabilities Current service cost Past service cost Interest cost Contributions by participants Actuarial19ss on liabilities Net benefits paid 16,095 15,797 791 194 {2,2131 (7331 1656} 14711 Closing present value of liabilitses 14,592 16,094 Analysis of tho movement in the market valua of Scheme assets 2025 2024 £Y)00 OpeniThJ fair value of assets Interest income on assets Actuarial gain on assets Contributions by the Employer Contributions by the parkncipanls Net benefits paid out Administration expenses 18.665 16,858 810 826 477 401 523 (7331 (15) 14711 114) Closing fair value of assets 19,838 18.665 Analysis of the amount shown in the balance sheet for LGPS pensions: 2025 £'ooo 2024 £'ooo Fair value of fund assets Present value of defined benefit obligalh)n Pension asset before adju$tmènts Effect of asset ceiling IFRS102 para28.221 Net pension assètllllabllity) recognised on Balance Sheet 19,838 (14,5921 5.246 15,2461 18,665 116,0951 2.570 12,5701 38

Merthyr Tydfil College Limited Notes to the financial statements for the year ended 31 July 2025 (continued) Hlstory of experience gains and1085è8 2025 £'ooo 2023 £'ooo 2022 2021 £'ooo £'ooo ActLFarial gain on assets 401 {2771 (2,217) 3.405 Changes in assumptiorbs underlying the present value of scheme liabilities 742 7,752 749 Exp8rlence (lossesygalns on Ikgbilitie5 11.2051 (1.6361 1297) 1,917 13,6141 Total amount recognised in the other com ehensive income 1621 128} 7.452 540 'Where Ihe calculation results in a net asset, recognition is limileé lo the exlenl lo which the college is able lo recover the surplus either through rèduced contributions in the future or Ihrough refunds from the plan. As this reflects the policy for the surplus. 19. Finan¢lal Contlng•ncy Fund The inslitulion acts as paying agent in the adminislralion and distribution of certain financial contingency funds available solely for leamers. The grants and related disbursements shown below are therefore excluded from the statement of Comprehensive income.. 2025 £'ooo 2024 £000 Grants re¢eNe Grants disbursed to studenls Interest Administration e(Ists Grants brough forward RepaKJ lo Medr Grants carried forward 240 258 248 246 32 115) 39

Merthyr Tydfil College Limited Notes to the financlal statsments for the year ended 31 July 2025 (continued) 20. Ultimate pargnt undertaking The ultimate parent undertaking and controlling party is the University of South Wales, a Higher Educ8tion Corporallon established under the Education Reform Acl 1988. The results of the Company have been incorporaled in the University of South Vvales, consolidated financial stalemenls, which forms the largest and smallest group for which the Company's financial statements are consolidated. copies of which are obtainable from the following address.. University of South Wales Pontypridd Rhondda Cynon Taff. CF37 1 DL 40

Merthyr Tydfll College Limited The College Merthyr Tydfil - 2024-2025 Academic Year College's Teaching Strategy and Well-Being Approach praised in Positive Estyn Report The colle8e has been praised for its significant role in supporting the community, well-defined leaching strategyi and focus on learner care and support creating a courteous and respectful culture, following its inspection in February 2025. The report emphasises the college's strong teaching model ensuring that le550ns are planned, engaging and well- placed with learner5 reporting to show strong en8agement during le550ns. College Launches Strategic Partnership with General Dynamics to Establish Cutting-Edge Engineering Academy In July 2025, th¢ college announced a landmark strategic partnership with General Dynamics, a global leader in defence and advanced manufacturing. This collaboration will see the launch of a slate-of-the-art Engineering Academy designed to equip learncrs with real-world employability skills in advanced manufacturing and engin¢¢ring technologies. The new Engineering Academy will serve as a dynamic hub wh¢r¢ stud¢nts can ¥&in hands-on experience with industry-standard tools, processes, and systems. By working closely wilh G¢neral Dynamics, the college aims to ensure that tts curriculum is aligncd with th¢ evolving needs of the defence seclor-an industy that plays a vital role in national security, innovation, and economi¢ growth. 41

Merthyr Tydfil College Llmited College Merthyr Tydfil accredited by ground-breaking dual career scheme The College Merthyr Tydfil is leading the way with supporting talented athletes in education in Wales, having been accredited by an innovative Talented Athlete Schola15hip Scheme ITASSI initiative. By fom)ally recognising an institution's commitment to supporting student-athletes, the TASS Dual Career Accreditation Scheme aims to allow athlete5 to reach their potential in education alongside achieving success in their sport. College Recognised Nationally for Outstanding Wellbeing Support for Learners The College Merthyr Tydfil has be￿ nationally recognised for its exceptional comrnitment to learner wellb¢ing through being nominated for a St David's Award, one of Wales, highesi honours, and also being announced as a finalist in the Aoc Beacons NOCN Award for Mental Health and Wellbeing. These accolad¢s. along with the achievement of the Carers Federation Quality Standard in Carers Support (QSCS) accreditation showcase the innovative and impactful work of the college's wellbeing tearn, who consistently go above and beyond to provid¢ tailored 5UPPOrt for learn¢rs facing a wide Tange of Challenges. Launch of AMBE Construction Academy In partnership with Tilbury Douglas In Noven]ber 2024, The College Merthyr Tydfil launch￿ a new AMBE Construction Acad¢my. in partnershtp with Tilbury Douglas. This innovative PTOSTamme aims to prepare learners for su¢¢¢ssful careers in the consttvclion industy through hands-on training> industy insigbt, and professional development opportunities, equipping learners with vital employability skills and real-WOTld construction ¢xperience. As an outcome of thcir experlence in the academy this year, three learners have successfidly gained an apprenticeship, College of Sanctuary Charter and Organisational Pledge The college ig proud to have recently signed the College of Sanctuary charter and organisational pledge, ¢on]mitting us to acknowledging and supporting the values of wel¢ome, Inclusio￿ and belonging am)ss our college community. This is part of our ongoing work to build a supportiv¢ and inclusive environment where every learner feels respected and empowered. 42

Merthyr Tydfil College Limited College Golf Star Callum Hook Wins National Champlonshlp and Secures International Invitation Collcge Sports learner Callum Hook delivered an outstanding perfonnance recently, winntng The Intercollegi41te Tour Championship held at Mottram Hall Golf Club in Macclesti¢ld. Competing against the top collegiate golfers from across th¢ North and South regions, Callum demonstrated ¢xc¢ptional skill and consistency with rounds of 70, 69, and 76, finishing the three-day championship al ]- under par. Hi5 impressive victory has earned him an invitation to the pr&%tigious Faldo Junior Tour, which will take pldce at the Al Ain Equestrian, Shooting & Golf Club in the United Arnb Emirates. College learners, partner with Trydan Gwyrdd Cymru to deliver key messages about renewable energy and the environment Media learners at the college have recently had the opportunity to work with Trydan Gwyrdd Cymnj to develop a short vidw that would appeal and even inspire curiosity amongst young people about renewable energy and the environment. This project is part of a wider partnership the college has cstablished with the company to support learners to Ix¢ome more aware and develop key skills around ￿¢n1net-Zer0. The link to the video is htt 5tudentmerth 56902 student me K12KeE MFS- rac- o1nt.com tVN ersonal hF Xi90vrC36 4kGbcBXr 9a w? 43