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2021-03-31-accounts

Company Number: 07066687 Charity Number: 1144894

Instructus

(A company limited by guarantee)

Consolidated Financial Statements For the year ended 31 March 2021

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

CONTENTS

Officers and professional advisors 1
Trustees’ Annual Report (incorporating the directors’ report) 2 - 12
Independent Auditor’s Report to the members of Instructus 13-17
Consolidated statement of financial activities (including income
and expenditure account) 18
Consolidated statement of financial position 19
Company statement of financial position 20
Consolidated statement of cash flows 21
Notes to the Financial Statements 22 - 37

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

OFFICERS AND PROFESSIONAL ADVISORS

Registered charity name Instructus
Charity Registration No. 1144894
Company Registration No.: 07066687
Trustees: Mr N P Hopkins (Chair)
Ms A S Cooper
Ms J A Norrington
Ms E J Rush
Mr R Traish
Ms R Allen
Ms J Seymour
Company Secretary: Mr A Hammond
Registered Office: Unit 3
Cherry Hill Road
North Kettering Business Park
Kettering
NN14 1UE
Auditor: Mazars LLP
Meridian Business Park
6 Dominus Way
Leicester
LE19 1RP
Bankers: Unity Trust Bank Plc
Nine Brindleyplace
Birmingham
B1 2HB
Solicitors: Freeth Cartwright LLP
Cumberland Court
80 Mount Street
Nottingham
NG1 6HH

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report) FOR THE YEAR ENDED 31 MARCH 2021

The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 March 2021.

Reference and administrative details

Reference and administrative details are shown in the schedule of officers and professional advisers on page 1 of the financial statements.

The Trustees

The trustees who served the charity during the year were as follows:

Mr N P Hopkins, Chair Ms J A Norrington Ms E J Rush Mr R Traish Ms R Allen Ms A S Cooper Ms J Seymour (appointed 29th April 2020), Vice Chair

Structure, governance, and management

Constitution

Instructus is a registered charity (Charity No: 1144894) and a company limited by guarantee (Company No: 07066687), which is incorporated in England and Wales.

Governing document

The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association.

Trustee appointment and management

Trustees are appointed by the board of trustees.

The charity has robust recruitment, induction, appraisal, and training processes in place for all trustees. Trustees receive frequent reports on operations, human resources, risks, and finance. Financial governance is a top priority for trustees: the CEO holds regular finance meetings and holds regular audit meetings with the executive team, where at least one trustee is present, and where performance is reviewed, targets are agreed, and financial governance is scrutinised to minimise risks and maximise income potential. Trustees meet every three months for board meetings and once a year to agree the strategic direction of the charity over the ensuing three-year period. The Risk & Audit Committee meets formally four times per year, plus additional meetings to review budgets as required. In 2021 we formerly established a Quality Committee with two Trustee members, which will also meet four times per year. Trustees act as Chairs of both Risk & Audit and Quality Committees.

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COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report) FOR THE YEAR ENDED 31 MARCH 2021

The trustees delegate operational powers to the Chief Executive Officer, who is responsible for implementing the strategies and operating the charity.

Arrangements for setting the remuneration of the charity’s key management personnel lie with the Chief Executive (for his direct reports) and with the Chairman of the board for the Chief Executive. The performance and development review documents are used to assess the performance of the key personnel and the financial performance of the charity, and its subsidiaries are used as benchmarks to agree any pay amendments.

All board and committee meetings during 2020/2021 were held via Microsoft Teams, due to Coronavirus restrictions.

Our trustees understand the key challenges facing Instructus and as well as their detailed induction training, receive regular updates on the performance of the charity.

Introduction

Instructus is a charity whose objects are “to advance education for the public benefit by promoting qualifications, training and skills”.

Instructus is the sole owner of CQM Training & Consultancy Ltd . At the end of the last financial year, Instructus merged the trade of the wholly owned subsidiary, The Springboard Consultancy Ltd , into the charity, as all activity was considered primary purpose to the Charity. Springboard programmes and branding have been maintained.

Instructus is the UK’s pan-sector standard setting body for business skills at work across the UK. It is responsible for setting standards, developing vocational business qualifications and apprenticeship frameworks, registering, and issuing pan-sector apprenticeship frameworks.

As part of our commitment to maintaining the UK Skills system, we are a strategic partner with Skills Development Scotland who operate the nations Standards and Framework agreement.

Instructus is a registered End Point Assessment Organisation (EPAO) in England for conducting End Point Assessments (EPA) on apprentices. Instructus currently covers 4 standards in the UK: Retailer (Level 2), Business Administrator (Level 3), Retail Team Leader (Level 3) and Team Leader (Level 3).

In 2020/2021 Instructus certified just over 30% of all the apprenticeships certified by non-governmental organisations in the UK.

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report) FOR THE YEAR ENDED 31 MARCH 2021

2020/2021 2019/20
England 34.0% 30.8%
Wales 21.2% 28.4%
Scotland 28.7% 21.5%
All 31.3% 28.9%

The Springboard Consultancy is an international training and development consultancy that contributes to achieving greater equality in the world by helping attendees be the best they can be and realising their full potential.

Springboard programmes have a high success rate with a high 98% recommendation rating and 90% of participants saying they are more confident about their personal development since completing a programme. Significantly, since the move to remote learning due to Covid, 98% found the technology easy to use and 96% were satisfied with a remote learning experience.

Springboard programmes make a significant difference to people’s lives and are delivered by employees and a network of licenced freelance trainers. As of March 2021, we had 179 licenced trainers delivering programmes.

CQM Training and Consultancy Ltd delivers training across the UK. CQM offer development programmes in the areas of leadership and management, continuous improvement, and vocational skills. As a lead provider on the Register of Apprenticeship Training Providers (ROATP), CQM deliver a range of apprenticeships in many different market sectors, with a notable coverage in the food and drink sector.

As of March 2020, CQM delivered programmes across a diverse client group, including XPO logistics, BAE, Ceva Logistics, Network Rail, Serco, Premier Foods and Bakkavor and had 511 learners on programme.

All activity conducted by Instructus, The Springboard Consultancy and CQM Training & Consultancy Ltd has a direct and positive public benefit. Our work in qualifications, training and skills always focuses on individual learners at the heart of our offering. The more people we can develop, the more lives will be transformed. The trustees are aware of and give due consideration, when setting objects and planning activities, to the Charity Commission’s guidance on public benefit

Coronavirus

There is no doubt that the Coronavirus has had a significant impact on all our activity. The majority of all our output relied heavily on face-to-face training, which came to a dramatic halt in March 2020, and has not fully recovered yet.

Over the course of the year, we have worked hard to ensure formats and training programmes have been updated to accommodate virtual delivery. Our staff have showed tremendous versatility in delivery methods and learner support to ensure that our participants have the best possible experience, and best chance of positive outcomes.

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COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report) FOR THE YEAR ENDED 31 MARCH 2021

Apprenticeship starts have reduced by up to 50% over the year, which in turn has meant our certification levels and EPA levels have been significantly impacted. However, there is a great deal of political support for apprenticeships and skills development which we anticipate will lead to a recovery in numbers as lockdowns ease.

As income was significantly impacted, we took some significant cost saving decisions in the year. We accessed the Government backed Furlough Scheme across the organisation at various periods across the year, and we undertook a restructure which resulted in redundancies in the organisation. Some Exec staff also undertook voluntary targeted reductions in salary at key points.

Our efforts to reduce costs and be flexible with our training provision has meant that the negative impact has largely been contained within the financial year. Our efforts throughout the year have led to a final quarter surplus in all parts of the organisation, albeit not in any way significant enough to counter initial losses.

The board have met regularly via MS Teams to support the ongoing decision making and the restructure exercise. They have paid particular attention to cash management, receiving, and reviewing updated forecasts throughout the year.

Looking forward we anticipate a period of consolidation in H1 as the economy strengthens and employees return to work, followed by an increase in activity from H2 onwards. We have invested in a strengthened marketing position to ensure we are able to take advantage of the dramatic changing landscape and opportunities as lockdowns end. As we enter 2021/22 we have launched our new ‘Authentic Leader’ programme in Q1, increased our Open Cohort Apprenticeship Programmes and are delivering increased nonapprenticeship activity in line with our strategy.

Charity and Social Impact

The Charitable object of Instructus is “to advance education for the public benefit by promoting qualifications, training and skills”.

Given the pandemic we have had to focus on our core offering in each component area. Principally this is as follows:

Qualifications

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COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report) FOR THE YEAR ENDED 31 MARCH 2021

Training

Skills

These activities have driven significant public benefit in a wide variety of areas, including.

In addition to our core activity, Instructus has developed and funded a 10 day ‘whole person’ training pilot for mixed gender 14–16-year-old disadvantaged students in conjunction with Moulton School and Science College. The first pilot was completed in April 2019 with the purpose of closing the achievement gap between the disadvantaged group and their peers. As the pandemic hit the UK, we were in the process of rolling out the programme to the first of four planned cohorts of students. Understandably the programme was put on hold, and schools remain in a period of consolidation following the significant upheaval in the year.

The trustees have agreed that the strategic direction of this programme will be reconsidered in October 2021, along with other potential projects, finances allowing.

Quality Assurance

Instructus has continued its role as both an Issuing Authority and Certification Body for apprenticeships in the UK, meeting all statutory and regulatory obligations. We were successful in passing all Federation audits and have maintained our grade 1 quality mark which is the highest possible. Instructus prides itself of continuous improvement of internal and external processes. Our certification team continue to significantly overachieve the targets set in our Service Level Agreements with the Federation.

We have passed all requirement audit requirements of the new External Quality Assurance process which ensures that our End Point Assessment service is fit for purpose.

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COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report) FOR THE YEAR ENDED 31 MARCH 2021

We have various accreditations, including:

Achievements and Performance

The year has largely been defined by the Coronavirus. All efforts have been invested in ensuring that the organisation has survived the pandemic and is able to rebuild from a strong base as things return to a sense of normality. The first lockdown in March led to most planned courses being cancelled and a steep drop off in apprenticeship-based activity.

Working with our customers we have developed online solutions for all our training and development interventions, which we aim to continue as part of a blended approach to future delivery. Our collective efforts have seen a strong final quarter, with the organisation returning to surplus for the period, despite the third national lockdown.

We have developed a new programme, Authentic Leader, which we are currently launching. This programme combines elements of our Springboard Programme with Management Development and an ILM qualification.

Alongside trying to ensure client programmes continued through the year, we have focused on improving the internal support infrastructure. We have embedded a new CRM system, improved our course tracking and resource allocation, and introduced an account management approach for key customers.

Much of our activity is reliant on the return of apprenticeship numbers. Numbers of new apprentices in Scotland and Wales are at 50% of normal levels. Given the Government focus on skills and apprenticeships we are expecting a recovery to the previous levels around September of 2022. In addition, the lockdown restrictions and furlough have had an impact on our ability to bring many learners to completion of their apprenticeship – we now have a concerted programme of activity to support completions as restrictions ease.

That said we remain in a confident position against the core KPI’s by which we measure our success; Financial Performance: Sales and Operations: Customer: People.

Financial Performance Despite significant losses in year, group cash position was above forecast at year end. COVID 19 has set our plans back by a full year, but final quarter performance and forward pipeline give confidence that recovery to surplus will be achieved in 21/22. Sales and Operations We have invested in Marketing resource to ensure we capitalise on market opportunity as restrictions lift. We are already seeing a significantly improved

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COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report) FOR THE YEAR ENDED 31 MARCH 2021

pipeline for EPA and Development courses. Effective CRMs in place across all the Group and tight operational management of our processes and customers.

Customer Our latest recommendation ratings from customers remain above 90% across all areas.

People We had a staff sickness rate of 0.2% for the year, and no staff left other than because of redundancy. We have ensured regular communication throughout the pandemic, with an enhanced focus on mental health. Staff feedback is very positive regarding the support offered over the year. Impact In 2020/21 we certified 26,227 apprenticeships, conducted 47 EPA’s, delivered Springboard courses to 1969 people, and had 511 learners on programme with CQM. When we compare to 19/20 the impact of the Coronavirus is clear – in 2019/20 we certified 48,470 apprenticeships, delivered Springboard courses to 5085 people, and had 800 learners on programme with CQM.

We have continued to support a wide variety of employers, training providers, awarding organisations and professional bodies with the development of learners and skills for the future.

The skills projects we were commissioned to deliver have been completed on time and on budget. Five National Occupational Standards (NOS) suites’ reviews: Business and Administration, Marketing, Contact Centre, Management and Leadership, Customer Service. These were reviewed to ensure the National Occupational Standards are up-to-date and all job functions are unique and sector specific.

National Occupational Standards (NOS) are statements of performance standards individuals must achieve when carrying out functions in the workplace, together with specifications of the underpinning knowledge and understanding. The NOS are developed by Standard Setting Organisations (SSO) who consult with employers and other stakeholders across each of the UK nations, (Scotland, Wales, Northern Ireland and England). This consultation process allows any specific requirements to be considered by each nation and the result is a set of NOS that are suitable for use across the UK. The NOS, which are set out in a common format, are approved on a four-nation basis and content is scrutinised by SQA Accreditation.

The review cycle involves the following stages of submission on the NOS database management system:

Part A - Evidence of Employer and Stakeholder Engagement

The information detailed in the Part A informs about the employer and stakeholder engagement and consultation activities. We outline the methodology for stakeholder engagement including nation representatives. For each nation we created a UK-wide and nation specific lists of organisations and upload these onto the system. For consultations in Wales, we also measure a demand to have the NOS translated into Welsh language during the consultation stage.

Draft NOS

We run a second, wider consultation with employers and stakeholders on the original NOS and Occupational map, gaining their input into a range of areas including the required updates, and what is missing. We gather the feedback from this consultation, clarifying specific points from stakeholders. Amendments are made to the NOS to produce the draft NOS, including updating them in line with the NOS guidance. The NOS drafts are sent to SQA Accreditation Manager. The Draft NOS are accompanied by the Status of Update,

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COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report) FOR THE YEAR ENDED 31 MARCH 2021

which is uploaded onto the system. The nation representatives provide feedback on the draft NOS and sign these off. The Draft NOS and the nation representatives’ feedback is then be shared with the Project Steering Group and any further amendments are made, agreed, and captured. Part B - Evidence of employer and stakeholder engagement

This identifies any changes that took place in relation to addressing methods of engagement in Part A. Nation representatives would be aware of this through the ongoing communication. The final project report is provided as part of the evidence, including a list of employers and stakeholders that were consulted in each nation and all feedback. Nation representatives sign off the Part Bs once they are happy.

Final NOS

The Steering Group is asked to agree the final draft NOS to be submitted for approval to the nation representatives via the NOS Database. Status of NOS document along with the final Occupational Map is uploaded onto the system. Nation representatives sign off the final NOS once they are happy. We then request that SDS publish the final NOS and move any obsolete/old NOS to Legacy, or Archive.

One new NOS suite: Digital Marketing. This suite was requested as a priority to underpin the current SVQ in Digital Marketing that also forms Modern Apprenticeship framework in Scotland.

All NOS have been standardised with consistent terminology across Performance Criteria, Knowledge and Understanding to ensure both parts are closely aligned and reflect on each other.

We also oversaw the translation into Welsh of five NOS suites – Cleaning and Support Services, Confined Spaces, Regulatory Compliance Life Science, Social Marketing and Sporting Excellence. All these NOS have undergone quality approval by Welsh Government.

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report) FOR THE YEAR ENDED 31 MARCH 2021

Risks

The single biggest risk is the impact of Coronavirus, especially financially.

The position in 20/21 was very hard to forecast as no-one knew what impact the pandemic would have. Given a period of increased stability in quarter 4, combined with the mitigations taken, the Executive team have put in place a realistic budget for the year ahead targeting a return to surplus.

The Risk & Audit Committee, under delegated authority of the board scrutinised these budgets and assumptions before recommending approval by the board. In addition, the Risk & Audit Committee oversaw a ‘worst case’ scenario planning exercise, where impacts were investigated with up to a 20% reduction in revenue.

The Board have reviewed budgets and scenario plans and are satisfied that Instructus remains a ‘going concern’ beyond 12 months, even if the worst-case position manifests. The board accept that significant mitigations may need to be actioned at the end of quarter 1 if the planned budget is not being achieved and have scheduled a full financial review for the July board.

For assurance, current performance for P1 and P2 is running in line with budget.

Whilst Instructus remains largely reliant on the performance of the apprenticeship sector, the Government response has largely been to put apprenticeships and skills development as a core focus for recovery.

Out of funding learners who have not yet completed apprenticeships present a significant risk. Many apprentices have been furloughed, or restrictions have meant that core projects have not been completed as part of the apprenticeship. Improving the completion rate as the lockdown ends is a significant priority in H1.

Certification volumes continue to decline in England as the reform measures move apprenticeship certification into the DfE with most final certificates expected to be issued by Instructus around Aug 2021, although some longer duration programmes will take until 2022/2023.

We are switching our resources and investments to End Point Assessment. We have high levels of satisfaction with our existing customers, and as lockdown ends are developing a healthy pipeline of customers and prospects.

Instructus has detailed risk register which is monitored at individual board level and is reviewed quarterly by the audit and risk committee and individual subsidiary boards.

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COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report) FOR THE YEAR ENDED 31 MARCH 2021

Reserves Review

Instructus has traditionally maintained a strong cash balance and enough reserves to maintain operations for between 24 – 30 months under normal market conditions. This cautious approach has meant that Instructus remained cash positive throughout the pandemic.

The board fully accept that the reserves have been needed to maintain operations throughout the pandemic. They therefore have agreed to set a minimum group reserve for 21/22 of £200,000 (down from £300,000). This was deemed sufficient to allow for mitigations to be actioned in any of the possible eventualities considered.

The Trustees have agreed to review this limit in April 2022, with the intention to increase and consider a split between allocated and non-allocated reserves.

Future Strategic Plans

We have undertaken a full strategic review over the course of the year, taking a focused view on key priorities and looking forwards to the impact we can make through to 2025. There is increasing optimism that, as lockdown pressures ease, the need for apprenticeships, personal development training and skills development will increase. Government has openly acknowledged the need to drive apprenticeships and skills development as a core foundation of future plans. In addition, the changing working environment will mean employees will benefit from our whole person interventions and equality enhancing programmes.

In summary our focus areas are:

The board of Trustees see H1 as an opportunity for recovery and consolidation. If budget plans are being met, and in addition to our annual strategic review, a full review of strategic priorities will be held in October, including a review of charitable initiatives for the future, including the re-establishment of our programme for schools.

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COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report) FOR THE YEAR ENDED 31 MARCH 2021

Trustees’ responsibilities statement

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

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.

In preparing these financial statements, the trustees are require to:

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

Auditor

Each of the person who is a trustee at the date of approval of this report confirms that:

The trustees’ annual report and the strategic report were approved signed on behalf of the board of trustees by:

NIGEL HOPKINS

NIGEL HOPKINS (Jul 23, 2021 16:31 GMT+1)

………………………………………

Mr N P Hopkins

Trustee

Date: Jul 23, 2021

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COMPANY LIMITED BY GUARANTEE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INSTRUCTUS FOR THE YEAR ENDED 31 MARCH 2021

Opinion

We have audited the financial statements of Instructus (‘the parent charity’) and its subsidiaries (‘the group’) for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for Opinion

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

Conclusions relating to going concern

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

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

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

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COMPANY LIMITED BY GUARANTEEE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INSTRUCTUS (continued) FOR THE YEAR ENDED 31 MARCH 2021

Other information

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

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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COMPANY LIMITED BY GUARANTEEE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INSTRUCTUS (continued) FOR THE YEAR ENDED 31 MARCH 2021

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report included within the Report of the Trustees.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 12, the trustees (who are also the directors of the parent charity for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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COMPANY LIMITED BY GUARANTEEE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INSTRUCTUS (continued) FOR THE YEAR ENDED 31 MARCH 2021

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011, UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and the Charities Statement of Recommended Practice.

We evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to use of restricted funds, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

Our audit procedures in relation to fraud included but were not limited to:

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COMPANY LIMITED BY GUARANTEEE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INSTRUCTUS (continued) FOR THE YEAR ENDED 31 MARCH 2021

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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

Use of the Audit Report

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

David Hoose (Jul 27, 2021 12:05 GMT+1)

David Hoose (Senior Statutory Auditor)

for and on behalf of Mazars LLP

Chartered Accountants and Statutory Auditor

Meridian Business Park 6 Dominus Way Leicester LE19 1RP

Date: Jul 27, 2021

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COMPANY LIMITED BY GUARANTEE

CONSOLIDATED STATEMENT of FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021


Note
Income and endowments:
Charitable activities
3

Other trading activities
4
Investments
5
Total incoming
Expenditure on:
Raising Funds
6
Charitable Activities
7,8
Total expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
Unrestricted
Total
Total
Funds
Funds
Funds
2021
2021
2020
£
£
£
996,982
996,982
831,527
1,249,244
1,249,244
2,377,816
69
69
221
2,246,295
2,246,295
3,209,564
1,393,958
1,393,958
2,606,202
1,280,191
1,280,191
997,857
2,674,149
2,674,149
3,604,058
(427,854)
(427,854)
(394,494)
1,270,519
1,270,519
1,665,013
842,665
842,665
1,270,519

The statement of financial activities includes all gains and losses recognised in the year. All funds relate to unrestricted funds in both years.

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEE CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 2021

Note
Fixed assets
Intangible fixed assets
13
Tangible fixed assets
14
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand

Creditors: amounts falling due
within one year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
one year
18
Provisions
Other provisions
19
Net assets
Funds of the charity
Unrestricted funds
Total charity funds
25		 2021
2020
£
£
215,152
312,025
34,075
56,800
249,227
368,825
6,311
6,848
616,209
625,532
678,345
798,583
1,300,685
1,430,963
(566,446)
(527,136)
734,239
903,828
983,466
1,272,652
(138,667) -
(2,133)
(2,133)
842,665
1,270,519
842,665
1,270,519
842,665
1,270,519

Approved by the Board of Trustees and signed on its behalf by:

NIGEL HOPKINS

NIGEL HOPKINS (Jul 23, 2021 16:31 GMT+1)

……………………………………… Mr N P Hopkins Trustee

Date: Jul 23, 2021

19

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

COMPANY STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 2021

Note
Fixed assets
Intangible fixed assets
13
Tangible fixed assets
14
Investments
15
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due
within one year
18
Net current assets
Net assets
Funds
Unrestricted funds
Total funds		 2021
2020
£
£
-
1,127
15,093
30,021
650,000
650,000
665,093
681,148
6,311
6,848
218,804
209,474
408,105
631,787
633,220
848,109
(201,715)
(156,451)
431,505
691,658
1,096,598
1,372,806
1,096,598
1,372,806
1,096,598
1,372,806

The deficit for the financial year of the parent company was £276,208 (2020: £757,071 deficit)

These financial statements were approved by the board of trustees and authorised for issue on behalf of the board by:

NIGEL HOPKINS

NIGEL HOPKINS (Jul 23, 2021 16:31 GMT+1)

………………………………………

Mr N P Hopkins

Trustee

Date: Jul 23, 2021

Company registration number: 07066687

20

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Cash flows from operating activities
(Deficit) for the financial year
Adjustments for:
Tax charge
Depreciation of tangible assets
Amortisation of intangible assets
Other interest receivable and similar income
Tax paid
Decrease/(increase) in stock
Decrease in debtors
Increase/(decrease) in creditors
Net cash used in operating activities
Cash flows from investing activities
Interest received
Purchase of tangible assets
Proceeds on the sale of fixed assets
Net cash (used in)/from investing activities
Cash flows from financing activities
Cash receipt from bank loans
Net (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of
year
Cash and cash equivalents at end of year		 2021
2020
£
£
(427,854)
(394,494)
8,062
-
27,662
27,988
96,873
231,612
(69)
(221)
(8,062)
-
537
(30)
9,503
86,671
17,977
(75,637)
(275,371)
(124,111)
69
221
(5,603)
(16,729)
667
-
(4,866)
(16,508)
160,000
-
(120,237)
(140,618)
798,583
939,201
678,345
798,583

21

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2021

1 General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Unit 3, Cherry Hall Road, North Kettering Business Park, Kettering, NN14 1UE. The financial statements are prepared in Sterling, which is the functional currency of the company.

Accounting policies

Basis of preparation

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

Going concern

The Instructus board have constantly monitored the impact of the Coronavirus pandemic on commercial activity. Significant adjustments to working practices have allowed us to move activities online resulting in improved performance from Q4 20/21. The impact of restrictions due to COVID has now stabilised, and we have a strong pipeline growing on a weekly basis. Throughout 2020/21 performance tracked closely to forecast, giving the board confidence in the Executives forward view of performance.

The board received detailed forecasts as part of the budget setting exercise for 2021/22. These have been reviewed in July 2022, alongside an updated forecast with no material changes. The board is also assured that performance in P1 & P2 is tracking in line with the forecast position. Budgets have also been stress tested looking at worst case scenarios. Based on the analysis, the board concluded that Instructus remains a going concern well beyond the next 12 months.

Consolidation

The financial statements consolidate the financial statements of Instructus and all its subsidiary undertakings.

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

22

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2021

Accounting policies (continued)

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on other factors, including expectations of future events that are believed to be reasonable under the circumstances.

In the opinion of management, the following are key areas of judgement or key sources of estimation Uncertainty that have a significant effect on the financial statements;

In estimating income relating to completion payments on apprenticeship programmes and associated end point assessment costs management at CQM use an estimate of an overall drop-off rate of apprenticeship learners from inception to completion of training. This rate is comparable with industry averages and actual experience delivering apprenticeship training programmes

The following principal accounting policies have been applied:

Taxation

The charity is exempt from tax on income and gains, falling within part 11 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that these are applied to its charitable objects. No tax charges have arisen.

Funds

General funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the charity’s charitable objects.

Designated funds are funds earmarked by the trustees for specific purposes.

Restricted funds, which have been given for a specific purpose and can only be used for that purpose without the consent of the donor.

There were no Designated or Restricted funds during the year ended 31 March 2021 or during the year ended 31 March 2020.

Incoming resources

All incoming resources are included in the Statement of Financial Activities when the Charity has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability.

Income from grants are recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

23

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2021

Accounting policies (continued)

Resources expended

All expenditure is recognised on an accruals basis inclusive of VAT which cannot be fully recovered, and is classified under the headings of the statement of financial activities to which it relates:

Expenditure on charitable activities include:

Expenditure on other activities are directly attributable to specific activities.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

Operating leases

Rentals under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company’s interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.

Goodwill is measured at a cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its useful life.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses.

24

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2021

Accounting policies (continued)

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows;

Goodwill 10 years Course development costs 3 years

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures, fittings, office and computer equipment 20% or 25% straight line

Investments

Investments, including investments in subsidiaries, are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

25

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2021

Accounting policies (continued)

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly.

Stocks

Stocks of study guides and training course materials are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Provisions

Provisions are recognised when the entity has on obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured as the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required in income or expenditure unless the provision was originally recognised are recognised in income or expenditure unless the provision was originally recognised as part of the cost of an asset.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2. Limited by guarantee

The charity is a private company limited by guarantee and consequently does not have a share capital. Each of the members is liable to contribute an amount not exceeding £10 towards the assets of the company in the event of liquidation.

26

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2021

3. Charitable activities income

Grants and contracts
Registration, certification and
Training income
Other income		 2021
2021
2020
2020
Unrestricted
Total
Unrestricted
Total
Funds
Funds
Funds
Funds
£
£
£
£
111,492
111,492
26,551
26,551
718,142
718,142
801,349
801,349
167,348
167,348
3,627
3,627
996,982
996,982
831,527
831,527

4. Other trading activities income

Training and consultancy
5.
Investment income
Bank interest receivable		 2021
2021
2020
2020
Unrestricted
Total
Unrestricted
Total
Funds
Funds
Funds
Funds
£
£
£
£
1,249,244
1,249,244
2,377,816
2,377,816
69
69
221
221
69
69
221
221

27

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2021

6. Costs of other trading activities

Total costs
Training and consultancy materials
Staff costs
Staff training and recruitment
Travel and sustenance
Premises costs
Legal and professional fees
Other expenditure
Amortisation of goodwill
Impairment of goodwill
Depreciation		 2021
Unrestricted
2021
Total
2020
Unrestricted
2020
Total
Funds
Funds
Funds
Funds
£
£
£
£
1,393,958
1,393,958
2,606,202
2,606,202		 2021
Unrestricted
2021
Total
2020
Unrestricted
2020
Total
Funds
Funds
Funds
Funds
£
£
£
£
1,393,958
1,393,958
2,606,202
2,606,202
1,393,958
1,393,958
2,606,202
2,606,202
2021
2020
£
£
240,580
639,710
917,736
1,411,507
26,789
19,942
4,219
112,891
36,906
30,828
46,928
53,271
48,764
92,076
60,220
95,476
-
134,783
11,816
15,718
1,393,958
2,606,202

7. Expenditure on charitable activities by fund type

Instructus – training and skills
Support costs		 2021
Unrestricted
Funds
2021
Total
Funds
2020
Unrestricted
Funds
2020
Total
Funds
£
£
£
£
1,258,409
1,258,409
970,124
970,124
21,782
21,782
27,733
27,733
1,280,191
1,280,191
997,857
997,857

28

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2021

8. Expenditure on charitable activities by activity type

Instructus Training and skills activities
Governance costs		 Activities
undertaken
Support
Total
Total
directly
costs
2021
2020
£
£
£
£
1,258,409
-
1,258,409
970,124
-
21,782
21,782
27,733
1,258,409
21,782
1,280,191
997,857
Instructus, parent company – Training and skills activities costs.
Contract, project, registration, training and certification costs
Staff costs
Staff expenses, training and recruitment
Promotion and publicity
Premises costs
Legal and professional fees
Other expenditure
Depreciation and amortisation
Governance costs:
Auditor fees
Costs of trustees’ meetings		 Total
2021
£
Total
2020
£
176,451
30,395
815,141
651,235
29,724
56,354
24,141
14,295
34,436
44,205
24,919
22,725
101,097
137,292
52,500
13,623
1,258,409
970,124
Total
Total
21,700
24,450
82
3,283
21,782
27,733

29

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2021

9. Net expenditure

10.
Auditor’s remuneration
Auditor’s remuneration
Auditor’s remuneration – non audit services
Net expenditure is stated after charging:
Amortisation and impairment of intangible assets
Depreciation of tangible fixed assets
Operating lease cost		 2021
2020
£
£
96,873
231,612
27,662
27,988
43,519
44,127
2021
2020
£
£
20,570
21,000
1,130
3,450
21,700
24,450

11. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

Wages and salaries
Social Security costs
Other post retirement benefit costs		 2021
2020
£
£
1,541,114
1,764,092
109,226
175,454
82,537
123,196
1,732,877
2,062,742

The average head count of employees during the year was 41 (2020: 49)

The number of employees whose remuneration for the year fell within the following bands, were:

£60,000 to £69,999
£70,000 to £79,999
£80,000 to £89,000
£110,000 to £119,999
£140,000 to £149,999		 2021
2020
£
£
2
-
1
-
-
3
1
-
-
1
4
4

The key management personnel of the group comprise those of Instructus being the Chief Executive Officer and Managing Director and the key management personnel of its two wholly owned subsidiaries, CQM Training and Consultancy Limited and The Springboard Consultancy Limited. The total for the group key management personnel was £383,452 (2020: £491,174).

30

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2021

12. Trustee remuneration and expenses

No trustees received remuneration for their services as trustees during the year (2020: None).

Trustees’ travel and subsistence expenses of £70 (2020: £3,282) were reimbursed by the charity to 1 (2020: 6) trustee during the year.

The charity has insurance to indemnify the trustees, other officers and the charity against the consequences of any neglect or default on the part of the trustees, employees and agents.

13. Intangible assets

Group and company

Cost
At 1 April 2020 and 31 March 2021
Amortisation/impairment
At 1 April 2020
Charge for the year
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020		 Course
development
Goodwill
costs
Total
£
£
£
954,758
4,058
958,816
643,860
2,931
646,791
95,746
1,127
96,873
739,606
4,058
743,664
215,152
-
215,152
310,898
1,127
312,025

The course development costs are company intangible assets.

31

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2021

14. Tangible assets
Group
Cost
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
Eliminated on disposals
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020
Company
Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020		 Equipment
Total
£
£
203,215
203,215
5,603
5,603
(1,334)
(1,334)
207,484
207,484
146,414
146,414
27,662
27,662
(667)
(667)
173,409
173,409
34,075
34,075
56,800
56,800
103,797
103,797
917
917
104,714
104,714
73,775
73,775
15,846
15,846
89,621
89,621
15,093
15,093
30,021
30,021

32

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2021

15. Investments

The group has no investments

Company
Cost
At 1 April 2020 and 31 March 2021
Impairment
At 1 April 2020
Provision for impairment
At 1 April 2020 and 31 March 2021
Carrying amount
At 1 April 2020 and 31 March 2021		 Shares in group
undertakings
£
1,285,336
635,336
-
635,336
650,000

Company investments comprise:

The company has two wholly owned subsidiaries, CQM Training and Consultancy Limited (Company No: 02782477) and The Springboard Consultancy Limited (Company No: 04729410). Both companies were registered in England and Wales, with registered offices as Instructus, 100% ordinary share capital owned and both are included within the consolidated accounts. The main activities of the subsidiary CQM Training and Consultancy Limited is training, coaching and consultancy. On 31 March 2020 the activitiy of The Springboard Consultancy Limited was hived up into Instructus and the company is now dormant.

A summary of their results is shown below:

CQM Training and Consultancy Limited

Income
Expenditure
Net (loss)/profit
Assets
Liabilities
Net Assets		 2021
2020
£
£
1,249,244
1,961,827
(1,305,143)
(1,918,686)
(55,899)
43,141
730,496
631,625
(549,582)
(394,812)
180,914
236,813

33

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2021

15. Investments (continued)

The Springboard Consultancy Limited

5. Investments (continued)
The Springboard Consultancy Limited
Income
Expenditure
Net loss
Assets
Liabilities
Net Assets		 2021
2020
£
£
-
415,989
-
(495,658)
-
(79,669)
2
2
-
-
2
2

16. Stocks

6. Stocks
Group Company
2021 2020 2021 2020
£ £ £ £
Raw materials and consumables 6,311 6,848 6,311 6,848

Stock comprises study guides and training course materials

17. Debtors

7. Debtors
Group Company
2021 2020 2021 2020
£ £ £ £
Trade debtors 130,783 109,659 111,010 98,267
Amounts owed by group
undertakings - - 44,048 19,219
Prepayments and accrued
income		 469,210 458,005 47,786 75,808
Other debtors 16,036 57,868 15,960 16,180
616,029 625,532 218,804 209,474

34

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2021

18. Creditors: amounts falling due within one year

Trade creditors
Accruals and deferred
income
Bank loans
Social security and other
taxes
Other creditors		 Group
Company
2021
2020
2021
2020
£
£
£
£
66,531
76,018
7,321
20,251
390,754
386,768
137,505
106,453
21,333
-
-
-
77,033
19,901
50,814
18,032
10,795
44,449
6,075
11,715
566,446
527,136
201,715
156,451

Accruals and deferred income includes £142,604 (2020: £173,247) of deferred income in relation to income received in advance for training and consultancy services.

Creditors: amounts falling due over one year

Group Company
2021 2020 2021 2020
£ £ £ £
Bank loans 138,667 - - -
138,667 - - -

The bank loans are secured by a debenture comprising fixed and floating charges over all the assets of CQM Training and Consultancy Limited. The loan attracts interests of £3.99% above the base rate. £10,600 of the loan balance is due after more than 5 years.

19. Provisions

19. Provisions
Group
At 1 April 2020
Additions
At 31 March 2021		 Deferred tax
£
2,133
-
2,133

The company does not have any other provisions

35

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2021

20. Deferred tax

The deferred tax included in the statement of financial position is as follows:

Included in provisions Group
Company
2021
2020
2021
2020
£
£
£
£
2,133
2,133
-
-
2,133
2,133
-
-

The deferred tax relates to accelerated capital allowances.

21. Net debt analysis

Group

roup
Cash
Borrwings		 At 1 April 2020
Net cash flows
At 31 March 2021
£
£
£
798,583
(120,238)
678,345
-
(160,000)
(160,000)
798,583
(280,238)
518,345

22. Employee benefits

Defined contribution plans

The amount recognised in the statement of financial activities as an expense in relation to defined contribution plans was £82,537 (2020: £123,196) Creditors include a balance of £10,637 (2020: £6,543) due in respect of pension commitments.

36

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2021

23. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

Not late than 1 year
Later than 1 year and not
later than 5 years
Larger than 5 years		 Group
Company
2021
2020
2021
2020
£
£
£
£
36,481
43,519
36,481
36,481
124,287
130,716
124,287
130,716
40,000
70,000
40,000
70,000
200,768
244,235
200,768
237,197

24. Related party transactions

Charity

During the year the charity received gift aid donations of £Nil (2020: £5,972) from The Springboard Consultancy Limited.

During the year the charity received recharge income of £36,887 (2020: £21,188) from CQM Training and Consultancy Limited and £Nil (2020: £17,434) from The Springboard Consultancy Limited. Year end debtors include a balance of £44,084 (2020: £19,219) due from CQM Training and Consultancy Limited.

25. Analysis of charitable funds

General funds At
1 April 2020
Income
Expenditure
At
31 March
2021
£
£
£
£
1,270,519
2,246,295
(2,674,148)
842,665
1,270,519
2,246,295
(2,674,148)
842,665

37