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2023-07-31-accounts

Company Number: 07066687 Charity Number: 1144894

Instructus

(A company limited by guarantee)

Consolidated Financial Statements For the period ended 31 July 2023

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

CONTENTS

Officers and professional advisors 1
Trustees’ Annual Report (incorporating the directors’ report) 2 - 17
Independent Auditor’s Report to the members of Instructus 18 - 22
Consolidated Statement of Financial Activities (including income
and expenditure account) 23
Consolidated Statement of Financial Position 24
Company Statement of Financial Position 25
Consolidated Statement of Cash Flows 26
Notes to the Financial Statements 27 - 42

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
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

1

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report and Strategic Report) FOR THE PERIOD ENDED 31 JULY 2023

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 period ended 31 July 2023.

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 period were as follows:

Mr N P Hopkins Chair Ms J A Norrington Ms E J Rush Mr R Traish Ms R Allen Ms A Cooper Ms J Seymour (resigned 8 September 2023)

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. Trustees act as Chair of the Risk & Audit Committee.

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report and Strategic Report) FOR THE PERIOD ENDED 31 JULY 2023

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.

Our trustees have concentrated on the strategic refocussing following withdrawal from End Point Assessment (EPA) and assuring the growth of Springboard and CQM. The 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 . The Springboard Consultancy is a brand within Instructus.

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 continue to certify apprenticeships in the devolved nations, alongside legacy frameworks in England. We consistently achieve quality metrics agreed with the Federation for Industry Sector Skills & Standards (FISSS).

In April 2022 Instructus strategically decided not to pursue Ofqual recognition as an End Point Assessment Organisation (EPAO). The Board agreed that the infrastructure requirements to achieve Ofqual recognition were not viable based on pipeline forecasts, and therefore decided to withdraw from the OFQUAL recognition process. This decision led to a significant gap in predicted revenues and a decision to restructure resources and remove operational costs.

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 sits as a brand within Instructus.

Springboard programmes make a significant difference to people’s lives and are delivered by employees and a network of licenced freelance trainers. As of July 2023, we had 129 licenced trainers delivering programmes, and delivered programmes to 2148 individuals over the year.

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report and Strategic Report) FOR THE PERIOD ENDED 31 JULY 2023

CQM Training and Consultancy Ltd delivers training principally across the UK with some international provision. 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.

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.

Financial Year End

Many of the metrics and reporting for apprenticeships through the ESFA run in the year August- July. A decision was made by the board to re calibrate the financial year to this time frame. As a result, the reporting period is from April 2022 – July 2023. Future reporting years will be from August to July annually.

Performance

The in-year performance was not in line with expectations, primarily due to the following reasons:

There are many positives to note:

Financial

Group cash position at year end was £253K. This was above the reserve level agreed by the board.

CQM returned a loss in the 16-month period of £83K.

Instructus returned a loss in the 16-month period of £186K.

One off restructuring costs of 82K are included in these figures.

The monthly turnover required to break even in April 2022 for Instructus was £100K. The turnover required to break even in July 2023 is £64K.

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report and Strategic Report) FOR THE PERIOD ENDED 31 JULY 2023

The monthly turnover required to break even in April 2022 for CQM was £142K. The turnover required to break even in July 2023 is £124K.

Average Monthly Revenue 2021/22 2022/23 2023/24
(Budget)
Springboard £35K £38K £39.5K
CQM Apprenticeships £110K £103K £114K
CQM Commercial £20K £21.5K £20K
Certification £37K £24.5K £24K
Skills Development £9.5K £5K £7K

Our cost savings have started to impact our performance with the organisation achieving overall surplus from January 2023, albeit not enough to offset previous losses.

Our budgets for 2023/24 have been agreed by the board based on out turn revenues rather than relying on growth, with a surplus position forecast for the year. Naturally we are aiming to achieve growth but are not reliant on it for a break-even position.

On this basis, the board are satisfied that the organisation remains a going concern.

Customer

Over the 16-month period to 31[st] July 2023 CQM achieved £325K of commercial work, with £79K of this from new clients and £246K from existing clients.

Our intention is to focus resource on driving commercial sales of a higher value via existing business. To release our limited resource from time consuming low value, yet profitable sales we are endeavouring to enable the lower value sales to follow a more automated sales process, but without impacting customer service – trialling via website, AI and chat bots.

In Springboard much work has been done on recovering royalty payments, bringing licencing agreements in line, creating an Open Cohort schedule, improving the trainer licencing process, and increasing sales value of programmes whilst moving towards smaller cohorts – hence encouraging repeat business/more cohorts. Account Management has become more consistent with better relationships being created across the piece.

Major wins include CMA and Johnson Matthey for CQM and the introduction of open cohorts, Leonardo’s, National Grid and Alpine F1 for Springboard.

We met all our certification quality scores throughout the year.

CQM Learner recommendation rate was 94.4%

CQM customer recommendation rate was 96.4%

We are introducing a quarterly recommendation rating across the group in the new financial year which will give us an ongoing view of our customer performance.

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report and Strategic Report) FOR THE PERIOD ENDED 31 JULY 2023

People

We saw a significant increase in staff sickness rates from 1% to 1.9% in the year. ONS figures state the UK average for 2022 was 2.6%.

We regularly measure staff satisfaction through a ‘pulse’ survey every six months, which identifies key areas for us to work on. We measure employee engagement through our net promoter score which is currently 4. The range of scores is -100 to 100, with anything between 0-30 being considered Good and anything over 30 being Excellent.

We continue to focus on employee training and development, accessing training courses, ongoing CPD, apprenticeships and coaching, regularly reviewed through line manager development ‘touchpoints’.

We have a suite of mandatory training courses covering all statutory requirements, including safeguarding, health and safety, GDPR and anti-bribery. Compliance with this training is monitored and reviewed on a regular basis.

The CEO leads quarterly Health and Safety meetings which are reported to the Risk & Audit Committee and board as appropriate.

Impact

2148 people have been developed through Springboard Programmes (in-house & freelance) over the 16 months.

We have licensed 18 new people to deliver Springboard Programmes, bringing our total number of active trainers to 129 (Freelance 58, In-house 71).

We have successfully certified 13,842 people across the UK.

We have continued to increase the number of learners on Improvement Standards programmes which helps build the skills levels across organisations, with some significant business improvements being achieved. Indeed, we have seen apprentices on our improvement standards apprenticeship programmes deliver over £3m in savings for their organisations even during a tough time for many, plus of course gaining a skillset to be able to continue to deliver that year on year.

We have successfully led 151 CQM learners through EPA, and a further 160 through framework/certificated programmes.

We currently have 366 learners on apprenticeship programmes with CQM, with an additional 34 currently on breaks in learning. Approximately 461 have completed commercial training programmes.

We continue to push local engagement, delivering apprenticeship presentations at local schools.

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.

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report and Strategic Report) FOR THE PERIOD ENDED 31 JULY 2023

Skills Projects

We delivered the following projects through our Standards and Framework contract on time and on budget:

We have been successfully reappointed to provide services in all four lots of the Standards & Frameworks Contract. Contract period is two years with a further two-year option.

Charity and Social Impact

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

As an organisation all our activity is focused on delivering this charitable object. We have a simple theory that developing people transforms lives. We believe that that our activities cultivate a positive economic and social impact for those we serve. This can be as simple as official certification of the hard work that has gone into an Apprenticeship, through to the delivery of an Apprenticeship, building the skills to forge careers and deliver commercial returns for the UK economy. This can be the delivery of Personal Development programmes that help promote inclusion and close gender pay gaps, through to life changing decisions from our participants that benefit businesses, communities, and individuals alike.

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report and Strategic Report) FOR THE PERIOD ENDED 31 JULY 2023

Our work can be broken down into 3 key areas

Qualifications Training Skills
Certification of English
Apprenticeship Frameworks		 Apprenticeships across a wide
range of Standards		 National Occupational
Standards Review Projects
Certification of
Apprenticeships in Scotland ,
Wales & Northern Ireland		 Lean Six Sigma Programmes Qualification structure
reviews
Certification of Yellow, Green,
Black and Master Black Belt
practitioners		 Management Programmes Apprenticeship framework
review, across the
devolved nations
Springboard Personal
Development Programmes
Licensing Programmes to grow
Springboard trainer base

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

In addition to our core activity, in 23/24 we are planning on exploring how we can support less advantaged individuals increase access to our core products and services. This will include exploring funding options for Springboard Programmes to offering subsidised places on Springboard Open cohorts.

The following case studies give a flavour of the impact we are making.

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report and Strategic Report) FOR THE PERIOD ENDED 31 JULY 2023

For the full case study – view here or alternatively you can watch the capture footage from the day here.

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report and Strategic Report) FOR THE PERIOD ENDED 31 JULY 2023

For the full case study – view here.

10

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report and Strategic Report) FOR THE PERIOD ENDED 31 JULY 2023

For the full case study – view here or alternatively you can watch the capture footage from the day here.

11

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report and Strategic Report) FOR THE PERIOD ENDED 31 JULY 2023

For the full case study – view here.

12

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report and Strategic Report) FOR THE PERIOD ENDED 31 JULY 2023

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 various accreditations, including:

Quality remains a key focus for CQM, with a review of the Quality Improvement Plan being a standing agenda item on all board meetings. Significant focus has been applied to learners beyond planned end date, which has seen a reduction from a high of 35% to 22.2% at the end of the year. We are aiming to get this down to 15% at the end of 23/24. Significant focus has also been applied to completion rates which ended the year at 57.7%. Whilst this is above last year’s national average for standards of 51.4%, we continue to work hard to achieve our target of 65% at the end of 23/24.

ESFA have reviewed our Quality Improvement Plan and support the actions being taken.

We regularly review our provision in line with OFSTED requirements to ensure continuous improvement and readiness in the event of inspection.

We are currently reviewing all Springboard evaluations, introducing an updated evaluation process to allow us to measure quality of delivery across the freelance network. Any deficiencies will be addressed through retraining or licence removal. We are also planning to update materials and content to ensure relevancy remains.

Restructuring

The removal of EPA provision and challenging financial climate led to a several restructuring phases throughout the period, including the creation of a cross organisation Sales and Marketing team under Jenny Humphreys.

We made three redundancies, with cost to CQM being £64K and cost to Instructus being £18K.

2 Staff did not meet their probation requirements.

12 staff left due to career progression, retirement, or lack of fit with the new organisational structure.

We recruited 6 people.

Net staff movements for the 16-month period were a reduction of 11 FTE’s.

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report and Strategic Report) FOR THE PERIOD ENDED 31 JULY 2023

The CQM Executive team have reviewed staffing levels against the revenue budget for 2023/24 and believe them to be appropriate.

Springboard have invested in admin and development resource to tighten controls on current arrangements and develop new course content. Given activity is delivered by freelance trainers, there are no requirements for additional resource to deliver the revenues agreed in the budgets for 2023/24.

Risks

There are 3 key risks:

Economy

The economic position remains fragile, with inflation running at 8%. Despite the rate of inflation, the Government has not increased apprenticeship funding bands since 2017 – AELP are lobbying for a 10% increase which would have significant bottom line impact.

Traditionally economic uncertainty has led organisations to consider investments in training and development. However, the high employment rates are seeing organisations investing in this area to prompt retention of talent and minimise recruitment needs. If the employment rates drop significantly, we could see this position destabilise.

The increase in cost of living is having an impact on all our employees. We have awarded a 3% pay increase but must recognise the additional risk of key staff leaving for better paid positions.

Completions & apprenticeship changes

An unnecessary side effect of the new Apprenticeship Standards combined with impact of COVID has been a significant drop off in people completing apprenticeships. We are working hard to mitigate and increase completions to over 60%.

A new Government may look at current completion rates and decide that significant changes are required to the skills and apprenticeship environment which could impact our organisation. As over 50% of our revenues come from work linked to apprenticeships, and large changes could have an impact, however there is some reassurance in the fact that those on current programmes would be allowed to complete, meaning any changes would have a long tail. Our small size affords us the ability to be nimble rather than facing some of the issues experienced by large providers who are totally reliant on funded activity.

Achieving growth whilst managing cash flow

Whilst cash remains positive, and the organisation is a going concern, there is no doubt that investment funds to fuel growth are limited. In addition, the restructuring has meant that staff are focusing on delivering against the core plan rather than making time to explore inorganic growth. We must stabilise our position and grow in areas that can be flexibly resourced with associates – notably Springboard and CQM Commercial.

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report and Strategic Report) FOR THE PERIOD ENDED 31 JULY 2023

Reserves Review

Pre Covid minimum cash reserve levels for the group had been set at £300K, which was based on analysis of the potential shut down liabilities should the organisation cease trading.

With board consent, a proportion of these reserves were utilised to counter the financial implications associated with the COVID Pandemic, with a revised minimum figure of £200K being agreed. This £200K cash balance across group has been agreed for the financial year 2023-24. The board have agreed to undertake a total review of required reserves as several scenarios have changed, including CQM returning to rolling quarterly surplus with strong EBITDA and a 40% reduction in workforce.

Group year-end cash position was £253K and is forecast to be in excess of £300K at the end of 2023/24. All CBiLs loan commitments have been met to date, and repayments are factored into forward budgets.

Future Strategic Plans

The board have reviewed our strategy over the year. Our core purpose continues as being ‘Developing People; Transforming lives’. In addition to delivering this remit in all our activity, we are aiming to show that sustainable growth can be achieved. We also aim to access funding to increase access to our programmes for the less advantaged. The board have agreed 3 strategic pillars to underpin our strategy and performance is measured against these areas. These pillars are Inclusive Culture, Outstanding Quality, and Smart Growth.

Key strategic priorities for the year ahead:

The board would like to thank the team for ensuring we maintained our activity through the continuing impact of the pandemic and established a platform for growth which we look build on over the coming years.

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report and Strategic Report) FOR THE PERIOD ENDED 31 JULY 2023

Trustees’ Responsibilities

The Trustees, who are also Directors of Instructus for the purposes of company law, are responsible for preparing the Report of the Trustees and the incorporated Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

In so far as the Trustees are aware:

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT (Incorporating the Directors’ Report and Strategic Report) FOR THE PERIOD ENDED 31 JULY 2023

Auditor

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

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

NIGEL HOPKINS

NIGEL HOPKINS (Dec 21, 2023 11:20 GMT) ……………………………………… Mr N P Hopkins

Trustee

Date: Dec 21, 2023

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEEE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INSTRUCTUS (continued) FOR THE PERIOD ENDED 31 JULY 2023

Opinion

We have audited the financial statements of Instructus (‘the parent charity’) and its subsidiaries (‘the group’) for the period ended 31 July 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Statements of Financial Position, 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 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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INSTRUCTUS

COMPANY LIMITED BY GUARANTEEE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INSTRUCTUS (continued) FOR THE PERIOD ENDED 31 JULY 2023

Other information

The other information comprises the information included in the Trustees Report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information. 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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INSTRUCTUS

COMPANY LIMITED BY GUARANTEEE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INSTRUCTUS (continued) FOR THE PERIOD ENDED 31 JULY 2023

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 Trustees’ Report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 16, 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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INSTRUCTUS

COMPANY LIMITED BY GUARANTEEE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INSTRUCTUS (continued) FOR THE PERIOD ENDED 31 JULY 2023

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

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, the Charities Statement of Recommended Practice, UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud and money laundering.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006 and the Charities Statement of Recommended Practice.

In addition, 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 income recognition (which we pinpointed to the cut off assertion subject to your revenue recognition significant fraud risk) and significant one-off or unusual transactions.

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEEE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INSTRUCTUS (continued) FOR THE PERIOD ENDED 31 JULY 2023

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

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 charity’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 (Dec 21, 2023 14:42 GMT)

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: Dec 21, 2023

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INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

CONSOLIDATED STATEMENT of FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE PERIOD ENDED 31 JULY 2023

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		 16 Month
ended
Unrestricted
16 Month
ended
Total
Funds
Funds
2023
2023
£
£
1,086,142
1,086,142
1,993,277
1,993,277
160
160
Year ended
Total
Funds
2022
£

1,057,474
1,527,002
76
2,584,552
1,550,731
1,183,790
2,734,521
(149,969)
783,278
3,079,579
3,079,579
2,119,434
2,119,434
1,296,621
1,296,621
3,416,055
3,416,055
(336,476)
(336,476)
633,309
633,309
296,833
296,833		 633,309

The Statement of Financial Activities includes all gains and losses recognised in the period. All funds relate to unrestricted funds in both periods.

23

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR THE PERIOD ENDED 31 JULY 2023

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		 31 July
2023
31 March
2022
£
£
87,975
157,563
14,070
29,458
102,045
187,021
2,706
3,785
323,984
479,320
252,954
448,908
579,644
932,013
(316,056)
(374,259)
263,588
557,754
365,633
744,775
(66,667)
(109,333)
(2,133)
(2,133)
296,833
633,309
296,833
633,309
296,833
633,309

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

NIGEL HOPKINS

NIGEL HOPKINS (Dec 21, 2023 11:20 GMT)

………………………………………

Mr N P Hopkins

Trustee

Date: Dec 21, 2023

24

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

COMPANY STATEMENT OF FINANCIAL POSITION FOR THE PERIOD ENDED 31 JULY 2023

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		 31 July
2023
31 March
2022
£
£
-
-
2,413
6,778
650,000
650,000
652,413
656,778
2,706
3,785
160,266
299,929
132,149
216,105
295,121
519,819
(148,031)
(191,342)
147,090
328,477
799,503
985,255
799,503
985,255
799,503
985,255

The deficit for the financial period of the parent company was £185,752 (year ended 31 March 2022: £111,344 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 (Dec 21, 2023 11:20 GMT)

………………………………………

Mr N P Hopkins

Trustee

Date: Dec 21, 2023

Company registration number: 07066687

25

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 JULY 2023

Cash flows from operating activities
Deficit for the financial period
Adjustments for:
Tax charge
Depreciation of tangible assets
Amortisation of intangible assets
Profit on disposal of tangible fixed assets
Other interest receivable and similar income
Tax received
Decrease in stock
Interest paid
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash used in operating activities
Cash flows from investing activities
Interest received
Purchase of tangible assets
Purchase of intangible assets
Proceeds on the sale of fixed assets
Net cash used in investing activities
Cash flows from financing activities
Repayment of bank loans including interest
paid
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of
period/year
Cash and cash equivalents at end of
period/year		 16 Month
ended
2023
Year
ended
2022
£
£
(336,476)
(149,969)
-
(7,983)
17,978
22,126
69,588
67,589
(958)
-
(160)
(76)
-
7,983
1,079
2,526
10,837
3,739
155,336
(128,514)
(58,203)
2,978
(140,979)
(179,601)
160
76
(2,829)
(17,595)
-
(10,000)
1,197
89
(1,472)
(27,430)
(53,503)
(22,406)
(195,954)
(229,437)
448,908
678,345
252,954
448,908

26

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 JULY 2023

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 board received detailed forecasts as part of the budget setting exercise for 2023/24. These have been reviewed in August 2023, 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.

27

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 JULY 2023

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 are no key areas of judgement or key sources of estimation Uncertainty that have a significant effect on the financial statements;

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 period ended 31 July 2023 or during the year ended 31 March 2022.

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.

28

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 JULY 2023

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.

29

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 JULY 2023

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% - 25% straight line

Investments

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

30

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 JULY 2023

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.

There are no key areas of judgement or key sources of estimation uncertainty that have a significant effect on the financial statements.

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 charity in the event of liquidation.

31

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 JULY 2023

3. Charitable activities income

Grants and contracts
Registration, certification and
training income
Other income		 Period ended
Period ended
Year ended
Year ended
31 July 2023
31 July 2023
31 March 2022
31 March 2022
Unrestricted
Total
Unrestricted
Total
Funds
Funds
Funds
Funds
£
£
£
£
-
-
48,469
48,469
477,507
477,507
1,007,410
1,007,410
608,635
608,635
1,595
1,595
1,086,142
1,086,142
1,057,474
1,057,474

4. Other trading activities income

Training and consultancy Period ended
Period ended
Year ended
Year ended
31 July 2023
31 July 2023
31 March 2022
31 March 2022
Unrestricted
Total
Unrestricted
Total
Funds
Funds
Funds
Funds
£
£
£
£
1,993,277
1,993,277
1,527,002
1,527,002

5. Investment income

Bank interest receivable Period ended
Period ended
Year ended
Year ended
31 July 2023
31 July 2023
31 March 2022
31 March 2022
Unrestricted
Total
Unrestricted
Total
Funds
Funds
Funds
Funds
160
160
76
76
160
160
76
76

32

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 JULY 2023

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
Depreciation		 Period ended
Period ended
31 July 2023
Unrestricted
31 July 2023
Total
Funds
Funds
£
£
2,119,434
2,119,434		 Year ended
Year ended
31 March 2022
Unrestricted
31 March 2022
Total
Funds
Funds
£
£
1,550,731
1,550,731
2,119,434
2,119,434		 1,550,731
1,550,731
Period ended
Year ended
31 July 2023
31 March 2022
£
£
235,414
236,915
1,481,455
1,047,095
3,124
21,485
94,471
25,036
51,577
31,844
1,920
43,502
177,240
73,261
60,220
60,220
14,013
11,373
2,119,434
1,550,731

7. Expenditure on charitable activities by fund type

Instructus – training and skills
Support costs		 Period ended
31 July 2023
Unrestricted
Funds
Period ended
31 July 2023
Total
Funds
Year ended
31 March 2022
Unrestricted
Funds
Year ended
31 March 2022
Total
Funds
£
£
£
£
1,270,800
1,270,800
1,161,177
1,161,177
25,821
25,821
22,614
22,614
1,296,621
1,296,621
1,183,791
1,183,791

33

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 JULY 2023

8. Expenditure on charitable activities by activity type

Instructus Training and skills
Governance costs		 Activities
undertaken
Support
Total
Period ended
Total
Year ended
directly
costs
31 July 2023
31 March 2022
£
£
£
£
1,270,800
-
1,270,800
1, 161,177
-
25,821
25,821
22,614
1,270,800
25,821
1,296,621
1,183,791
Instructus, parent company – Training and skills activities costs.
Contract, project, registration, training and certification costs
Staff costs
Staff expenses, training and recruitment
Premises costs
Legal and professional fees
Other expenditure
Depreciation and amortisation		 Total
Period ended
31 July 2023
£
Total
Year ended
31 March 2022
£
205,131
194,389
852,464
757,939
25,160
19,861
67,997
40,687
13
17,323
107,687
112,861
12,348
18,117
1,270,800
1,161,177
Governance costs: Total Total
Period ended Year ended
31 July 2023 31 March 2022
£ £
Auditor fees 23,585 21,685
Costs of trustees’ meetings 2,236 929
25,821 22,614
9.
Net expenditure
Net expenditure is stated after charging:
Period ended Year ended
31 July 2023 31 March 2022
£ £
Amortisation and impairment of intangible assets 69,588 67,589
Depreciation of tangible fixed assets 17,978 22,126
Operating lease cost 47,171 36,481

9. Net expenditure

34

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 JULY 2023

10. Auditor’s remuneration

Auditor’s remuneration
Auditor’s remuneration – non audit services		 Period ended
31 July 2023
Year ended
31 March 2022
£
£
18,735
18,320
6,983
3,365
25,718
21,685

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		 Period ended
31 July 2023
Year ended
31 March 2022
£
£
1,952,447
1,527,901
217,116
165,962
173,191
113,444
2,342,754
1,807,307

The average head count of employees during the period ended 31 July 2023 was 36 (year ended 31 March 2022: 40).

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

£60,000 to £69,999
£70,000 to £79,999
£100,000 to £109,999
£120,000 to £129,999		 Period ended
31 July 2023
Year ended
31 March 2022
£
£
1
2
0
1
1
0
1
1
3
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 £442,469 (year ended 31 March 2022: £330,859).

35

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 JULY 2023

12. Trustee remuneration and expenses

No trustees received remuneration for their services as trustees during the period ended 31 July 2023 (year ended 31 March 2022: None).

Trustees’ travel and subsistence expenses of £1,541 (year ended 31 March 2022: £746) were reimbursed by the charity to 6 (year ended 31 March 2022: 2) trustees during the period ended 31 July 2023.

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 2022
Additions
At 31 July 2023
Amortisation/impairment
At 1 April 2022
Charge for the period
At 31 July 2023
Carrying amount
At 31 July 2023
At 31 March 2022		 Course
development
Asset under
construction
Goodwill
costs
Software
Total
£
£
£
£
954,758
4,058
10,000
968,816
-
-
-
-
954,758
4,058
10,000
968,816
807,195
4,058
-
811,253
67,588
-
2,000
69,588
874,783
4,058
2,000
880,841
79,975
-
8,000
87,975
147,563
-
10,000
157,563

The course development costs are company intangible assets.

36

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 JULY 2023

14. Tangible assets

Group
Cost
At 1 April 2022
Additions
Disposals
At 31 July 2023
Depreciation
At 1 April 2022
Charge for the period
Eliminated on disposals
At 31 July 2023
Carrying amount
At 31 July 2023
At 31 March 2022
Company
Cost
At 1 April 2022
Additions
Disposals
At 31 July 2023
Depreciation
At 1 April 2022
Charge for the period
Eliminated on disposals
At 31 July 2023
Carrying amount
At 31 July 2023
At 31 March 2022		 Equipment
Total
£
£
224,796
224,796
2,829
2,829
(5,190)
(5,190)
222,435
222,435
195,338
195,338
17,978
17,978
(4,951)
(4,951)
208,365
208,365
14,070
14,070
29,458
29,458
107,147
107,147
733
733
(585)
(585)
107,295
107,295
100,369
100,369
5,089
5,089
(576)
(576)
104,882
104,882
2,413
2,413
6,778
6,778

37

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 JULY 2023

15. Investments

The group has no investments

Company
Cost
At 1 April 2022 and 31 July 2023
Impairment
At 1 April 2022
Provision for impairment
At 1 April 2022 and 31 July 2023
Carrying amount
At 1 April 2022 and 31 July 2023		 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 2021 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		 Period ended
31 July
2023
Year ended
31 March
2022
£
£
1,993,437
1,527,003
(2,076,576)
(1,498,041)
(83,139)
28,962
351,266
517,151
(283,917)
(366,663)
67,349
150,488

38

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 JULY 2023

15. Investments (continued)

The Springboard Consultancy Limited

Income
Expenditure
Net loss
Assets
Liabilities
Net assets
6. Stocks
Raw materials
and consumables		 Group
Period ended
Year ended
31 July 2023
31 March 2022
£
£

2,706
3,785		 Period ended
31 July 2023
Year ended
31 March
2022
£
£
-
-
-
-
-
-
2
2
-
-
2
2
Company
Period ended
Year ended
31 July 2023
31 March 2022
£
£
2,706
3,785

16. Stocks

Stock comprises study guides and training course materials.

17. Debtors

Trade debtors
Amounts owed by group
undertakings
Prepayments and accrued
income
Other debtors		 Group
Company
Period
Year ended
Period ended
Year ended
31 July 2023
31 March 2022
31 July 2023
31 March 2022
£
£
£
£
114,676
203,267
84,485
124,130
-
-
36,407
72,279
193,515
259,575
23,656
88,012
15,793
16,478
15,718
15,508
323,984
479,320
160,266
299,929

39

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 JULY 2023

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
Period ended
Year ended
Period ended
Year ended
31 July 2023
31 March 2022
31 July 2023
31 March 2022
£
£
£
£
71,885
75,019
17,658
22,423
135,041
193,410
90,216
141,567
32,000
32,000
-
-
65,514
60,744
36,857
20,937
11,616
13,086
3,300
6,415
316,056
374,259
148,031
191,342

Accruals and deferred income includes £93,028 (year ended 31 March 2022: £148,751) of deferred income in relation to income received in advance for training and consultancy services.

Creditors: amounts falling due over one year

Bank loans Group
Company
Period ended
Year ended
Period ended
Year ended
31 July 2023
31 March 2022
31 July 2023
31 March 2022
£
£
£
£
66,667
109,333
-
-
66,667
109,333
-
-

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. There is no balance due over 5 years.

19. Provisions

Group
At 1 April 2022
Additions
Disposals
At 31 July 2023		 Deferred tax
£
2,133
-
-
2,133

The company does not have any other provisions.

40

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 JULY 2023

20. Deferred tax

The deferred tax included in the Statement of Financial Position is as follows:

Included in provisions Group
Company
Period ended
Year ended
Period ended
Year ended
31 July 2023
31 March
31 July 2023
31 March 2022
£
£
£
£
2,133
2,133
-
-
2,133
2,133
-
-

The deferred tax relates to accelerated capital allowances.

21. Net debt analysis

Group

Cash
Borrowings		 At 1 April 2022
Net cash flows
At 31 July 2023
£
£
£
448,908
(195,954)
252,954
(141,333)
42,666
(98,667)
307,575
(153,288)
154,287

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 £173,191 (year ended 31 March 2022: £113,444). Creditors include a balance of £10,305 (year ended 31 March 2022: £11,672) due in respect of pension commitments.

41

INSTRUCTUS

COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 JULY 2023

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
Period ended
Year ended
Period ended
Year ended
31 July 2023
31 March 2022
31 July 2023
31 March 2022
£
£
£
£
40,188
34,338
31,638
34,338
110,552
120,000
92,667
120,000
-
10,000
-
10,000
150,740
164,338
124,305
164,338

24. Related party transactions

Charity

During the period the charity received recharge income of £104,468 (year ended 31 March 2022: £28,951) from CQM Training and Consultancy Limited. Period end debtors include a balance of £36,407 (year ended 31 March 2022: £72,279) due from CQM Training and Consultancy Limited.

25. Analysis of charitable funds

General funds At 1 April 2022
Income
Expenditure
At 31 July 2023
£
£
£
£
633,309
3,079,579
3,416,055
296,833
633,309
3,079,579
3,416,055
296,833

42