**Company Registration No. 08969288 (England and Wales)**
**CREATIVITY WORKS PRESTON ANNUAL REPORT AND UNAUDITED ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022**
## **CREATIVITY WORKS PRESTON ANNUAL REPORT AND UNAUDITED ACCOUNTS CONTENTS**
||**Page**|
|---|---|
|Company information|3|
|Director's report|4|
|Income statement|5|
|Statement of financial position|6|
|Notes to the accounts|7|
|Detailed profit and loss account|9|
- 2 -
**CREATIVITY WORKS PRESTON COMPANY INFORMATION FOR THE YEAR ENDED 31 JULY 2022**
**Director** Steven Egan **Company Number** 08969288 (England and Wales) **Registered Office** 33 SHEPHERD STREET PRESTON PR1 3UE **Accountants** SMART ACCOUNTING (NW) LTD 239 RIBBLETON LANE PRESTON PR1 5EA
- 3 -
## **CREATIVITY WORKS PRESTON (COMPANY NO: 08969288 ENGLAND AND WALES) DIRECTOR'S REPORT**
The director presents his report and accounts for the year ended 31 July 2022.
## **Directors**
Steven Egan held office during the whole of the period.
## **Statement of directors' responsibilities**
The directors are responsible for preparing the report and accounts in accordance with applicable law and regulations.
Company law requires the directors to prepare accounts for each financial year. Under that law, the directors have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these accounts, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Small company provisions**
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
Signed on behalf of the board of directors
............................................................................
Steven Egan Director
Approved by the board on: 27 February 2023
- 4 -
**CREATIVITY WORKS PRESTON INCOME STATEMENT FOR THE YEAR ENDED 31 JULY 2022**
|**Turnover**
Cost of sales
**Gross profit**
Administrative expenses
Other operating income
**Operating (loss)/profit**
**(Loss)/profit on ordinary activities before taxation**
Tax on (loss)/profit on ordinary activities
**(Loss)/profit for the financial year**|**2022**
**£**
562,454
(348,938)
213,516
(333,599)
64,256
(55,827)
(55,827)
-
(55,827)|**2021**
**£**
553,533
(283,515)|
|---|---|---|
|||270,018
(315,992)
81,350|
|||35,376|
|||35,376
-|
|||35,376|
- 5 -
## **CREATIVITY WORKS PRESTON STATEMENT OF FINANCIAL POSITION AS AT 31 JULY 2022**
|**Notes**
**Fixed assets**
Tangible assets
4
**Current assets**
Debtors
5
Cash at bank and in hand
**Creditors: amounts falling due within one year**
6
**Net current (liabilities)/assets**
**Net assets**
**Capital and reserves**
Profit and loss account
**Shareholders' funds**|**2022**
**£**
13,364
9,488
65,672
75,160
(83,570)
(8,410)
4,954
4,954
4,954|**2021**
**£**
477
50,858
57,672|
|---|---|---|
|||108,530
(48,226)|
|||60,304|
|||60,781|
|||60,781|
|||60,781|
For the year ending 31 July 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS 102 Section 1A - Small Entities.
The financial statements were approved by the Board and authorised for issue on 27 February 2023 and were signed on its behalf by
Steven Egan Director
Company Registration No. 08969288
- 6 -
**CREATIVITY WORKS PRESTON NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022**
## **1 Statutory information**
CREATIVITY WORKS PRESTON is a private company, limited by shares, registered in England and Wales, registration number 08969288. The registered office is 33 SHEPHERD STREET, PRESTON, PR1 3UE.
## **2 Compliance with accounting standards**
The accounts have been prepared in accordance with the provisions of FRS 102 Section 1A Small Entities. There were no material departures from that standard.
## **3 Accounting policies**
The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.
## _**Basis of preparation**_
The accounts have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets.
## _**Presentation currency**_
The accounts are presented in £ sterling.
## _**Tangible fixed assets and depreciation**_
Tangible assets are included at cost less depreciation and impairment. Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives:
Plant & machinery 18% on WDV
|**4**
**Tangible fixed assets**
**Cost or valuation**
At 1 August 2021
Additions
At 31 July 2022
**Depreciation**
At 1 August 2021
Charge for the year
At 31 July 2022
**Net book value**
At 31 July 2022
At 31 July 2021
**5**
**Debtors**
**Amounts falling due within one year**
Trade debtors
Other debtors|**Plant &**
**machinery**
**£**
At cost
2,159
-
2,159
1,682
86
1,768
391
477|**Computer**
**equipment**
**£**
At cost
-
15,821
15,821
-
2,848
2,848
12,973
-
**2022**
**£**
101
9,387
9,488|**Total**
**£**
2,159
15,821|
|---|---|---|---|
||||17,980|
||||1,682
2,934|
||||4,616|
||||13,364|
||||477|
||||**2021**
**£**
41,471
9,387|
||||50,858|
- 7 -
## **CREATIVITY WORKS PRESTON NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022**
## **6 Creditors: amounts falling due within one year**
||||
|---|---|---|
|**Creditors: amounts falling due within one year**
Bank loans and overdrafts
Trade creditors
Taxes and social security
Other creditors|**2022**
**£**
37,580
25,999
3,578
16,413
83,570|**2021**
**£**
48,226
-
-
-|
|||48,226|
## **7 Average number of employees**
During the year the average number of employees was 20 (2021: 20).
- 8 -
## **CREATIVITY WORKS PRESTON DETAILED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 JULY 2022**
This schedule does not form part of the statutory accounts.
|**Turnover**
Sales
**Cost of sales**
Subcontractor costs
Other direct costs
**Gross profit**
**Administrative expenses**
Wages and salaries
Directors' salaries
Employer's NI
Staff training and welfare
Travel and subsistence
Motor expenses
Rent
Rates
Light and heat
Telephone and fax
Stationery and printing
Subscriptions
Bank charges
Insurance
Equipment hire
Repairs and maintenance
Depreciation
Accountancy fees
Advertising and PR
**Other operating income**
Government grants
**Operating (loss)/profit**
**(Loss)/profit on ordinary activities before taxation**|**2022**
**£**
562,454
81,015
267,923
348,938
213,516
235,349
-
12,634
6,858
29,623
441
11,865
4,306
6,578
2,365
10
1,721
149
4,748
8,715
741
2,934
3,900
662
333,599
64,256
(55,827)
(55,827)|**2021**
**£**
553,533|
|---|---|---|
|||72,179
211,336|
|||283,515|
|||270,018|
|||207,935
870
10,927
12,464
24,805
-
7,250
3,169
12,593
2,722
-
2,214
71
4,416
22,939
-
105
3,000
512|
|||315,992|
|||81,350|
|||35,376|
|||35,376|
- 9 -
## **CREATIVITY WORKS PRESTON**
## **ANNUAL REPORT AUGUST 2021 TO JULY 2022**
## **REPORT OF THE MANAGEMENT COMMITTEE FOR THE YEAR ENDED 31ST JULY 2022.**
year ended 31st July
2022.
## **REFERENCE AND ADMINISTRATIVE INFORMATION**
Charity Name: Creativity Works Preston Charity Registration number: 1161063 Company registration number: 8969288
## **REGISTERED OFFICE AND OPERATIONAL ADDRESS:**
33 Shepherd Street Preston PR1 3YD
## **MANAGEMENT COMMITTEE**
Mr Bill Adams Chair Mr Russell Hogarth Mr Paul Wallace Mr David Walker Miss Holly Breakell
## **SECRETARY**
Mrs Lauren Gutteridge
## **SENIOR MANAGEMENT TEAM**
Mr Steve Egan, Chief Executive Mrs Anita McGreevy, Compliance & Operations Manager Lauren Gutteridge, Centre Manager
## **BANKERS**
HSBC, 331 Lord St, Southport, PR8 1NJ NatWest, Fishergate, Preston, PR1 2AD
**Creativity Works Preston Annual Report 1[st] August 2021 to July 31[st] , 2022**
## **INTRODUCTION FROM THE CHAIR**
I am very pleased to introduce the Annual Report from Creativity works Preston for 2021/22. Our vitally important work has brought an expanding programme of education and activity for increasing pool of students having an experience of education to suit their specific needs.
Inspired by a fantastically dedicated and competent team, we aim to provide both stability and challenge in everything we do, backed by sound finance and management of the organisation.
I'm very proud to present our Annual Report to highlight the services we provide to the people of Preston and surrounding areas.
Bill Adams Chair - Creativity Works
**Creativity Works Preston Annual Report 1[st] August 2021 to July 31[st] , 2022**
## **INTRODUCTION FROM THE CHIEF EXECUTIVE**
I write this introduction at the end of our eighth year of operation, 8 years, who would have thought? Certainly not everyone but as the old saying goes, we live to tell the tale!
It seems an appropriate time to reflect; having come through the pandemic, despite the seemingly negative financial results, more of that later, far stronger than we have ever been.
COVID made everyone pull together and I believe made people realise that community, doing something for others thing.
, that all sections
Certainly, for CWP and the young people we work with, recognition is more forthcoming as we continue to develop pertinently, could, and maybe should be.
We are working more and more with young people with SEN, and it is they, through their regular attendance and achievements, that show in practice and in our collective all be it small way, that everyone has something to offer. That potential exists in all, and the role of every member of staff, volunteer and trainee, is to facilitate that development.
The financial figures show a deficit of £55,827 but I make no apologies for that. Coming out of the unprecedented position we all found ourselves in it would have been easy to and make cuts to budgets, staffing and premises, but that would have been to risk setbacks to all the good work and developments we have made.
In truth, given the ever growing network of schools and increasing recognition from LCC, it was a relatively risk free decision to make. As I write this report, always some months after the accounts have been produced, the decision has been vindicated as we are profiling a healthy surplus that will eradicate this years deficit and provide sufficient finance for reserves and continual investment.
None of what has been achieved would have been possible with out the fantastic work of the staff team, ably led by Lauren Gutteridge (nee Breakell). Every single member of the staff team has played their part in our development and I know that as long as we stick together and build on what we have achieved so far we can look forward with confidence to the years ahead.
I want to thank the Trustees for continuing to support the organisation, giving up free time to do so should never be taken for granted and we, the whole staff team,
Finally, and behalf of all involved at CWP I would like to place on record our continued thanks to Chris Whalley of One File for the donation of licences for E portfolios development support and Vicky Brown and family for continued use of the building. They all help to make a difficult job a little bit easier.
Steve Egan
**Creativity Works Preston Annual Report 1[st] August 2021 to July 31[st] , 2022**
## **OUR AIMS AND OBJECTIVES**
association are to:
_**provide alternative education to marginalised people who need to learn in a different way to the traditional education system. The crux of the learning environment and pedagogy is learning through doing. We do this by providing an inclusive, professional and supportive learning environment for individuals irrespective of their circumstances or**_
We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months.
The review looks at the success of each key activity and the benefits they have brought to those groups of people we are set up to help.
The review also helps us ensure our aim, objectives and activities remained focused on our stated purposes.
when reviewing our aim and objectives and in planning our future activities.
In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.
As part of this review, we wanted to simplify and capture what we are about and it is simply:
## _**to make learning fun!**_
**Creativity Works Preston Annual Report 1[st] August 2021 to July 31[st] , 2022**
## **THE FOCUS OF OUR WORK**
Our focus continues to be the provision of education to people in need of alternative approaches. Specifically, we focus on learning by doing and Production Education.
The strategies we used to meet these objectives included:
- Hair and Beauty salon
- Art & Design
- Music making
- Childcare
- Food
- Video production for third sector organisations.
- Working in partnership with other agencies to secure the widest range of services is available that best matches the needs of people of Preston and surrounding areas.
## **HOW OUR ACTIVITIES DELIVER PUBLIC BENEFIT**
Our main activities and who we try to help are described below. All our charitable activities focus upon engaging people who are marginalised from mainstream society. Through engagement in our programmes individuals are up skilled, develop confidence and self-esteem which in turn moves them closer to the job market and become more active and productive citizens.
**Creativity Works Preston Annual Report 1[st] August 2021 to July 31[st] , 2022**
## WHO USED AND BENEFITED FROM OUR SERVICES?
In the academic year 2021/2022, CWP worked with a total of 101 learners (80 school pupils, and 21 NEET young people aged 16-18 (25 with EHCP) across five departments (Media, Music, Childcare, Food Technology, Hair and Beauty).
We worked with the following schools:
- Brookfield
- Fulwood Academy
- Moorhey
- Spenbrook
- Ashton Community Science College
- Unity Academy
- Cumberland
- Acorns
- Roselyn House
- Waterloo Lodge
- Shaftesbury High
Out of 101 learners 86 remained at CWP until the end of the academic year.
A variety of reasons for those that left:
- School withdrawal
- Exclusion by CWP
- Completed short term intervention
A total of 83 learners achieved a nationally recognised qualification at Level 1 or above
Out of 80 school pupils, 88% had a learning difficulty/disability or were at risk of permanent exclusion. 25 were on Free school meals
All learners had one or more of the following barriers to learning: mental health, emotional and behavioural or family issues; learning difficulty/disability, were in care/supported accommodation, young offenders/at risk of offending, were in economic difficulty.
- Success rate: 80%.
Out of 80 school pupils, 88% had a learning difficulty/disability or were at risk of permanent exclusion.
**Creativity Works Preston Annual Report 1[st] August 2021 to July 31[st] , 2022**
## **GOVERNANCE, STAFFING AND QUALITY**
The organisation is a charitable company limited by guarantee, incorporated on 1[st] April 2014 and registered as a charity on 27[th] March 2015.
We have established a brilliant, diverse and committed management board to oversee our continuous improvement.
We are conscious of the need to have a board of trustees that reflect the local community. All our Trustees are from Preston and have connections with Education and Training in their personal careers.
## **TRUSTEE INDUCTION AND TRAINING**
Most trustees are already familiar with the practical work of the charity having been involved in one capacity or another with similar charities or organisations in the past.
All trustees are invited and encouraged to attend a series of short training sessions (of no more than an hour) to familiarise themselves with the charity and the context within which it operates.
## **STAFFING & QUALITY**
In 2021-22 we employed:
- 27 people
- 7 male,
- 20 female
Of that figure 7 joined CWP as part of the Governments Kick Start scheme. Our teams are split into two main areas:
**Learning Support**
- Compliance and Operations manager
- Centre Manager
- Head of Education
- Office Manager
- IT Officer
- Communications Officer
- Finance and Administrator
## **Delivery team:**
- Music (3)
- Hair and Beauty (4)
- Art & Design (2)
- Film (2)
- Health & Social Care
- Maths & English
All staff are paid at least the living wage. The ratio between the lowest and highest paid member of staff is 1 to 2 No staff member earned more than £40,000
## **FINANCE**
As a local charity we believe in transparency with regards income and expenditure full details to be found in our published accounts.
In relation to income the main sources were from schools, grants and ESF with salaries accounting for the bulk of expenditure.
## **PRINCIPAL FUNDING SOURCES**
- Youth Music
**Creativity Works Preston Annual Report 1[st] August 2021 to July 31[st] , 2022**
- Erasmus Plus
- Schools
- Lancashire County Council
- ESF-Subcontract with LSEP
- Government Grant (Kick Start)
- One File Ltd (in Kind support)
- Gainsborough Floorings (in Kind support)
**Creativity Works Preston Annual Report 1[st] August 2021 to July 31[st] , 2022**
## **RESERVES POLICY**
Our aim is to make a yearly surplus to build a sustainable charity that serves as many people as possible. We aim facilities, in staff and in trainees.
requirements for reserves considering the main risks to
The Management Committee has examined the requirements for reserves considering the main risks to the organisation. It has established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets held by the charity should be 3 months of the expenditure. Therefore, the target is £90,000 in general funds.
The reserves are needed to meet the working capital requirements of the charity and the Management Committee are confident that at this level they would be able to continue the current activities of the charity in the event of a significant drop in funding.
## **PLANS FOR FUTURE PERIODS**
- Increase income to £600,000.
- Increase schools funding to £220,000
- Invest in specialist staff for employment and pastoral support.
- Explore EFA/SFA contracting.
- Deliver high quality training.
**Creativity Works Preston Annual Report 1[st] August 2021 to July 31[st] , 2022**