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2023-08-31-accounts

Company Registration No: 01269980

Charity Registration No: 272565

English Speaking Board (International) Limited

Report of the Trustees and Financial Statements

For The Year Ended 31 August 2023

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED CONTENTS

Page
Chair�s Report 1-2
Trustees and Advisers 3
Report of the Trustees including Statement of Trustees' responsibilities 4 � 7
Independent Auditor�s Report to the Trustees 8 � 11
Statements of Financial Activities 12-13
Statement of Financial Position 14
Statement of Cash Flows 15
Notes to the Accounts 16 � 26

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

CHAIR�S REPORT

FOR THE YEAR ENDED 31 AUGUST 2023

Reflections:

2023 was a momentous year for ESB as we celebrated our 70[th] year. We organised five multimedia events focusing on our theme of �Looking Forward, Looking back� and demonstrating the achievements of our learners and their teachers and tutors. We celebrated with our partner in Greece and up and down the UK in Belfast, Stoke on Trent, London, and Shropshire. With our centres we created marvellous content to showcase what we do and the impact that we make. We designed an exceptional set multi-media of events to celebrate our learners and their teachers whilst pulling together as a team to face our financial reality, yet still delivering amazing operational outcomes for our 40,000 learners.

From our multimedia events 15% of all our centres (of whom 50% of our Top 20) participated with their learners; all of our head office staff committed to attend at least two events, 90% of our Trustees and 25% of our contracted assessors chose to attend and we even had a tree planted for us by one of the centres.

We launched our first National Impact Report and had a peer reviewed article published in the online Chartered Teaching Magazine � all about the impact of our Oracy qualifications for learners facing disadvantage.

ESB is still a vital and thriving organisation delivering lifelong skills and qualifications across the world.

Financial position

The planned financial performance for academic year 22-23 was extremely difficult due to the impacts of the costof-living crisis with its higher energy costs which impacted both on our office costs as well as shipping, postage and paper. We continue to see longer term impacts of Brexit with significantly high and new customs duties imposed on our goods entering international countries as well most significantly the continued lower performance of our current ESOL International clients.

We however saw continued new business in our Speech portfolio and growth in China and our ESOL Skills for Life centres exceeded their budgeted revenue.

Due to robust levels of surpluses earned in more economically stable times ESB can weather these current shortterm difficulties and are confident of our ability to return to operational surpluses by the end of this strategic period.

Governance changes

July of this year saw our Chair and longest serving trustee Pippa Quarrell end her term. Pippa had volunteered her time for us since 2012 and we are incredibly grateful that she continues her association with ESB by preparing learners for their assessments at her school.

Sami Mirza became Chair and Frances Richardson, Vice Chair. We began recruitment for new trustees in the summer as we had three further vacancies occurring at the start of the next academic year.

At the time of writing this report, we thank Ian Kelly, Ian Patterson and Emma Dawkins for their time as Trustees and welcome Joanne Jarjue, Damian Low, Dr James McAtear and Jason Vit to the Board.

Charitable outreach

To finish our 70th year we launched a search for patrons so that we can raise our profile and attract philanthropists to fund our outreach campaign to be able to reach three times as many centres in a year. In addition to schools and colleges, we particularly want to support third sector organisations who do amazing work with disadvantaged young people and asylum seeker charities as well as colleges who are facing the impact of less adult social service provision to be able to support young adults with significant learning needs.

Quality Assurance

In October 2023 we delivered remote training and standardisation to our assessors for the suite of ESOL Skills for Life, English as an additional Language and Speech products., We launched a new report writing framework for our Speech qualifications to continuously improve our assessing standards and reliability of our assessments.

We continue to offer monthly digital assessor training for our ESOL International assessors and similarly annual online standardisation. We, again, have prepared our Statements of Compliance for our regulators and addressed the Key Lines of Enquiry raised by Ofqual.

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

CHAIR�S REPORT

FOR THE YEAR ENDED 31 AUGUST 2023

Workforce changes

Our workforce has remained largely unchanged this year.

Our Senior Assessor for Speech Julie Collins left in the summer of this year and we promoted Lauren Kearney, in our Product Development team to be a Senior Assessor and Senior Product Developer for Speech. Georgie Anderson went on maternity leave in the summer and we are backfilling her role and developing broader skills within the team.

S Mirza � Chair

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

TRUSTEES AND ADVISERS

AS AT 31 AUGUST 2023

Trustees Ms P Quarrell (term ended July 2023)
Ms J Ward
Mr l Kelly (term ended October 2023)
Mr I Patterson (retired October 2023)
Mr S Mirza
Mr S Norton
Ms S Priestley
Ms F Richardson
Mr D Brown
Mr A Cumiskey
Ms E Dawkins (resigned October 2023)
Ms Joanna Jarjue (Appointed September 2023)
Mr Damian Low (Appointed September 2023)
Dr James McAtear (Appointed September 2023)
Mr Jason Vit (Appointed September 2023)
Company Secretary Ms C Leary
Chief Executive Officer Ms T Renshaw
Registered office 9 Hattersley Court
Burscough Road
Ormskirk
Lancashire
L39 2AY
Company number 01269980
Charity number 272565
Auditor BWM
Suite 5.1
12 Tithebarn Street
Liverpool
L2 2DT
Bankers NatWest Bank PLC
130 Lord Street
Southport
PR9 0AE
Barclays Bank PLC
164 Allerton Rd
Liverpool
L18 2DH
Solicitor BLM (Berrymans Lace Mawer LLP)
King�s House
42 King Street West
Manchester M3 2NU
Investment Managers Canaccord Genuity

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2023

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report together with the financial statements for the year ended 31 August 2023. The charity has opted to prepare its accounts using the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) and follow the Charities SORP (FRS 102) (as amended for accounting periods commencing from 1 January 2019). As a charity registered in England and Wales, the charitable company also reports in accordance with the Charity Commission for England and Wales� guidance on public benefit and the Charities Act 2011.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The English Speaking Board (International) Limited (ESB) is a company limited by guarantee and a registered charity as defined by the Companies Act 2006, and incorporated on 22 July 1976. The organisation is governed by its Memorandum and Articles of Association which were revised, updated and approved by the members at the 64[th] Annual General Meeting held at the Mercure Piccadilly Hotel, Portland Street, Manchester, M1 4PH on 24 June 2017. A further revision was made on 18 July 2020.

Reference and administrative details

The trustees, who are also the directors for the purpose of company law, and who served during the year were:

Ms J Ward Ms P Quarrell (term ended July 2023)
Ms F Richardson Ms E Dawkins (resigned October 2023)
Mr I Kelly (term ended October 2023) Mr I Patterson (retired October 2023)
Mr S Mirza Mr S Norton
Ms S Priestley Mr D Brown
Mr A Cumiskey Mr D Low (Appointed September 2023)
Ms J Jarjue (Appointed September 2023) Mr J Vit (Appointed September 2023)
Dr J McAtear (Appointed September 2023)

Recruitment and appointment of new trustees

The directors, who are also charity trustees for the purposes of Charity Law, are known as members of the Board of Trustees. They are recruited in line with the terms laid out in the Articles of Association. Trustees are not paid but may claim reasonable expenses. They may not be salaried employees but may be contracted as freelance assessors for example.

Induction and training of new trustees

All new trustees receive an induction pack, which includes a brief of their general Charity and Company Law responsibilities, the ESB�s Memorandum and Articles of Association, along with other ESB policies and information. In addition we hold digital induction sessions to support their knowledge and understanding of our financial strategy, our business strategy and our regulators.

Organisational Structure

ESB has a board of trustees with a broad range of skills, knowledge and expertise, who meet four times a year and serve on a voluntary basis. Trustees who have received remuneration for ESB contracted work carried out during the year are referred to in Note 12 of the financial statements.

There is a clear differentiation between governance, which is the role of the Board of Trustees, and operations, which is the role of the Chief Executive. For example, the trustees can collectively direct the Chief Executive but not the staff. Similarly, the staff may prepare the budget but it is the trustees who set it. The contact with staff is through the Chief Executive who reports to and is monitored and appraised by the Board.

Remuneration of Key Management

ESB operates its salary structure within salary bands. Roles are designated a value taking into account the expertise required for the role, the judgment required and the accountability. Key Management salaries are set by the Chief Executive on appointment. Pay increases are based on performance using published criteria. All permanent employees of ESB may seek a pay review once a year. Operational bonuses are based on ESB�s financial performance, the Chief Executive makes the final decision on these after seeking input from the management team. The Chief Executive�s salary and pay increases are set by the Board of Trustees.

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2023

Risk Management

The trustees have a formal process for assessing risks and implementing risk management strategies. A comprehensive risk register is presented to the Trustees at each meeting.

The operating arm of the charity usually meets as a Senior Management Team twice a month to review its performance against strategy and to consider strategic activities that need to be undertaken.

OBJECTIVES AND ACTIVITIES

Objectives and activities for the public benefit

English Speaking Board (International) Limited (ESB) as an organisation with charitable status has a purpose to want all learners to possess the oracy and English language skills they need to achieve their aspirations. We want to stretch the most able and support the least confident and realise the potential of all by closing the disadvantage gap.

In planning their activities, the trustees have kept in mind the Charity Commission�s guidance on public benefit. Running ESB as an effective business limited by guarantee is ensuring that we can meet our charitable purposes because we seek to support the widest group of learners, domestically and internationally and we have the evidence of the public benefit of enhancing communication, English language, speaking and listening skills to learners. We can therefore price our products accordingly and secure revenue that provides us with development funds and operating surpluses to maintain, sustain and develop our work. ESB did increase its prices for the academic year 22-23. However, it also increased assessor and marker fees as well as staff remuneration and paid a cost-of-living increase to staff to acknowledge the external financial stressors.

The trustees have identified the strategic objectives of the Charity, and these are highlighted in the three-year Strategic Plan (2023-2025), which was approved in January 2023.

Our purpose

To do this we:

Central strategic theme - To create deep customer engagement

Value creation is the primary aim of any business entity. Creating value for customers helps sell products and services, while creating value for the business, in the form of increases in revenue and surplus, insures the future availability of surplus funds to invest in our future and support charitable outreach

Goals

By 2025 return to income levels of £1.9M

We continue to look externally to understand the market, our competitors and our clients, and produce a competitor analysis when required. Each year we identify Key Performance Indicators to drive the achievement of our strategy.

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2023

Charitable status and public benefit

The charity regularly reviews all fees and charges to ensure price sensitivity appropriate to our markets. In addition, the charity is keen to promote access for those who may find funding them difficult but who wish to benefit from all that an ESB assessment provides.

The charity established an Access Fund in memory of Christabel Burniston MBE, founder of ESB. In this financial year we had a target to financially support 20 continuing and 12 new centres. We achieved 69% of this target and spent £37,261 from the Christabel Burniston fund.

FINANCIAL REVIEW

The Statement of Financial Activities (SOFA), on page 12, reflects all income receivable in the year. Total income amounted to £1,451,352 (2022: £1,667,365). Total expenditure was £1,751,057 (2022: £1,734,316). This resulted in a loss for the year of £299,705 (2022: loss of £66,951). Total funds carried forward decreased to £1,493,698 (2022: £1,793,403).

ESB has good financial management in place, with tight control of cash flow and debtors. The Trustees, as an intrinsic part of the charity�s strategic risk management, will continue to monitor income and expenditure carefully and to receive monthly reports on major trends.

Reserves Policy

The trustees have examined the requirements for reserves in light of the main risks to the organisation. ESB�s reserves policy, approved by the Board, is to maintain a level of free reserves that will enable the charity to ensure a continuity of activity and have the ability to adjust in a measured way to significant changes in the external regulatory and economic environment.

The trustees consider the target should be the equivalent of between eight and ten months of operational fixed expenditure which is estimated at £700,000. At the current year-end 31 August 2023, free reserves stood at £980,784, a decrease of £270,696 from the prior year. Plans are in place to maintain charity reserves at healthy levels and not to allow these to fall below the target.

Principal funding sources

The organisation is funded by the charges it makes for the delivery of assessments and examinations.

FUTURE DEVELOPMENTS

We have three new centres using our online ESOL International products which will commence later in 2023 and having attended the Great Oracy Exhibition in Manchester in October we are confident that we will have further growth in our Speech business in the next academic year both in the UK and internationally.

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2023

STATEMENT OF TRUSTEES� RESPONSIBILITIES

The trustees (who are also directors of English Speaking Board (International) Limited for the purposes of company law) are responsible for preparing the Trustees� Annual Report and the financial statements in accordance with applicable law and Financial Reporting Standards applicable in the UK and Republic of Ireland.

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:

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The trustees are responsible for keeping adequate 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.

Disclosure of information to auditor

In so far as the trustees are aware:

there is no relevant information of which the charitable company's auditors are unaware; and

Auditor

The auditor will be appointed at the Trustees� meeting in January 2024.

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.

This report was approved by the trustees on 27 January 2024 and signed on their behalf by:

������������������ S Mirza- Chair

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

INDEPENDENT AUDITOR�S REPORT TO THE TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2023

Opinion

We have audited the financial statements of English Speaking Board (International) Limited (the �charity�) for the year ended 31 August 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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.

Other information

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

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

We have nothing to report in this regard.

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

INDEPENDENT AUDITOR�S REPORT TO THE TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2023

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the 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 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 statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

INDEPENDENT AUDITOR�S REPORT TO THE TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2023

The extent to which the audit was considered capable of detecting irregularities, including fraud Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company�s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council�s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

INDEPENDENT AUDITOR�S REPORT TO THE TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2023

Use of our report

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

Louise Casey ACA (Senior Statutory Auditor) for and on behalf of BWM

15 February 2024

������.

Chartered Accountants

Statutory Auditor

Suite 5.1 12 Tithebarn Street Liverpool L2 2DT

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2023

CURRENT YEAR
Income and endowments from:
Note
Donations and legacies
Charitable activities
3
Investments
4
Total income and endowments
Expenditure on:
Raising Funds
8
Charitable activities
5
Total expenditure
Net gains/(losses) on Investments
9
Net income / (expenditure) before transfers
Transfers between funds
20
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
-
1,434,387
16,965
1,451,352
2,488
1,681,826
1,684,314
(6,487)		 Designated
funds
£
-
-
-
-
-
60,256
60,256
-		 Total
funds
2023
£
-
1,434,387
16,965
1,451,352
2,488
1,742,082
1,744,570
(6,487)		 Total
funds
2022
£
235
1,666,882
248
1,667,365
-
1,734,316
1,734,316
-
(239,449)
(37,261)
(276,710)
1,546,585
1,269,875		 (60,256)
37,261
(22,995)
246,818
223,823		 (299,705)
-
(299,705)
1,793,403
1,493,698		 (66,951)
-
(66,951)
1,860,354
1,793,403

The statement of financial activities includes all gains and losses in the year. All income and expenditure derive from continuing activities.

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2023

PRIOR YEAR
Income and endowments from:
Note
Donations and legacies
Charitable activities
3
Investments
4
Total income and endowments
Expenditure on:
Charitable activities
5
Total expenditure
Net income / (expenditure) before transfers
Transfers between funds
20
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
235
1,666,882
248
1,667,365
1,658,261
1,658,261
9,104
(2,873)
6,231
1,540,354
1,546,585		 Designated
funds
£
-
-
-
-
76,055
76,055
(76,055)
2,873
(73,182)
320,000
246,818		 Total
funds
2022
£
235
1,666,882
248
1,667,365
1,734,316
1,734,316
(66,951)
-
(66,951)
1,860,354
1,793,403

The statement of financial activities includes all gains and losses in the year. All income and expenditure derive from continuing activities.

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

STATEMENT OF FINANCIAL POSITION

AS AT 31 AUGUST 2023

Note
Fixed assets
Intangible assets
14
Tangible assets
15
Investments
16
Current assets
Debtors
18
Cash at bank and in hand
Creditors: Amounts falling due
within one year
19
Net current assets
Total assets less
current liabilities
Net assets
Funds
20
Unrestricted funds - fixed assets
Unrestricted funds - undesignated
Unrestricted funds - designated
Restricted funds		 Unrestricted
funds
£
-
289,091
493,513
782,604
165,777
387,874
553,651
(66,380)
487,271
1,269,875
1,269,875
782,604
487,271
-
-
1,269,875		 Designated
funds
£
-
-
-
-
-
223,823
223,823
-
223,823
223,823
223,823
-
-
223,823
-
223,823		 Total funds
2023
£
-
289,091
493,513
782,604
165,777
611,697
777,474
(66,380)
711,094
1,493,698
1,493,698
782,604
487,271
223,823
-
1,493,698		 Total funds
2022
£
4,151
290,954
-
295,105
221,601
1,363,342
1,584,943
(86,645)
1,498,298
1,793,403
1,793,403
295,105
1,251,480
246,818
-
1,793,403

These financial statements have been prepared in accordance with the provisions applicable to companies� subject to the small companies� regime.

These financial statements were approved and authorised for issue by the Board of Trustees on 28 January 2023 and were signed on its behalf by:

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S Mirza- Chair
Trustee
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Company number: 01269980

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2023

Cash flows from Operating Activities
Cash receipts from customers
Cash receipts from other operations
Cash paid for supplier purchases
Cash paid for general operating and administrative expenses
Customer refunds
Cash generated from operations
Cash flows from Investing Activities
Purchase of Tangible & Intangible assets
Purchase of investments
Proceeds on disposal of investments
Cash receipts from bank account interest
Cash receipts from investment
Cash receipts from rental income
Net cash (absorbed) / provided by Investing Activities
Cash flows from Financing Activities
Repayment of bank loans
Net cash used in financing activities
Effects of currency translation on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
1,468,080
1,929
(877,942)
(854,369)
(1,823)
(264,125)
-
(500,000)
-
-
3,442
9,320
(487,238)
-
-
(283)		 2022
£
1,609,715
21,396
(862,470)
(819,697)
(6,745)
(57,801)
-
-
248
-
-
248
-
-
(5,916)
(751,645)
1,363,342
611,697		 (63,469)
1,426,811
1,363,342

See Note 24 for Analysis of changes in net funds

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ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding year.

English Speaking Board (International) Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 9 Hattersley Court, Burscough Road, Ormskirk, Lancashire, L39 2AY.

(a) Accounting convention

These accounts have been prepared in accordance with the charity�s governing document, the Charities Act 2011 and �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)� (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.

(b) Going concern

At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts.

(c) Income

All income is included in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Entitlement to legacy income is the earlier of the charity being notified of an impending distribution or the legacy being received.

Income from the provision of examinations is accounted for as earned.

(d) Expenditure

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources. Expenditure includes irrecoverable value added tax.

(e) Intangible fixed assets

Expenditure relating to development of a database system and mobile phone app has been capitalised and is being amortised over their useful life of one to three years.

(f) Tangible fixed assets

Tangible fixed assets costing more than £1,500 may be capitalised and included at cost including any incidental expenses of acquisition.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight-line basis over their expected useful economic lives as follows:

Land and buildings - 1% on cost Office fittings, computer and technology - 33%-50% on cost

-16-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023

(g) Fixed asset investments

Quoted investments and other investments are stated at current market value at the balance sheet date. All gains and losses, both realised and unrealised, are included in the Statement of Financial Activities.

(h) Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

(i) Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

(j) Financial instruments

The charity has elected to apply the provisions of Section 11 �Basic Financial Instruments� and Section 12 �Other Financial Instruments Issues� of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's statement of financial position when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity�s contractual obligations expire or are discharged or cancelled.

-17-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

(k) Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee�s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

(l) Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

(m) Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange gains and losses are recognised in the Statement of Financial Activities.

(n) Operating leases

Rentals applicable to operating leases are charged to the SOFA over the period in which the cost is incurred.

(o) Taxation

The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income and gains falling within these exemptions.

The charity is not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT.

(p) Fund accounting

Unrestricted funds which have not been designated for specific purposes can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

-18-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

2 Critical accounting estimates and judgements

In the application of the charity�s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic lives of intangible assets

The annual amortisation charge for intangible fixed assets which comprise a website, database and mobile phone app development is sensitive to changes in their estimated useful economic lives. The useful economic lives are assessed on initial acquisition and reassessed periodically to ensure they remain appropriate. They are amended when necessary to reflect current estimates based on technological advancement, future investments and economic utilisation. Accounting policy note (e) sets out the useful economic lives applied to the intangible fixed assets and their carrying value is shown in note 14.

3 Income from charitable activities

Examination fees
Other examination income
IESOL examination fees
Grant Income		 Unrestricted
funds
£
840,129
45,051
549,207
-
1,434,387		 Total
2023
£
840,129
45,051
549,207
-
1,434,387		 Unrestricted
funds
£
786,145
45,333
830,395
5,009
1,666,882		 Total
2022
£
786,145
45,333
830,395
5,009
1,666,882

-19-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

4
Investment income
Unrestricted
funds
£
Bank interest
4,003
Income from Investments
12,962
16,965
5
Cost of charitable activities
Current Year
Examinations
Staff Costs (Inc. agency staff) (note 13)
Examination expenses and fees
IESOL examination expenses
Other
Management
Finance (note 6)
Governance (note 7)
Prior Year
Examinations
Staff Costs (Inc. agency staff)
Examination expenses and fees
IESOL examination expenses
Other
Management
Finance (note 6)
Governance (note 7)		 Total
2023
£
4,003
12,962
16,965
Direct
Costs
£
543,042
345,129
196,438
74,616
-
-
-
1,159,225

-20-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

FOR THE YEAR ENDED31 AUGUST 2023
6
Finance
Bank charges
Loan interest
Exchange Rate Variance
7
Governance
Audit fees (current year)
Company Secretary Work
Trustee Meetings & Expenses
8
Raising Funds
Investment Management
9
Net gains/(losses) on investments
Net gains/(losses) on investments
10
Auditors� remuneration
The analysis of auditor�s remuneration is
Audit of charity�s annual accounts
Other non-audit services		 Unrestricted
funds
£
1,128
-
(68)
1,060
Unrestricted
funds
£
6,306
870
7,176
as follows:		 Total
2023
£
1,128
-
(68)
1,060
Total
2023
£
6,306
870
7,176		 Unrestricted
funds
Total
2022
£
£
1,199
1,199
-
-
5,429
5,429
6,628
6,628
Unrestricted
funds
Total
2022
£
£
5,248
5,248
-
-
5,312
5,312
10,560
10,560
Total
2023
Total
2022
£
£
2,488
-
Total
2023
Total
2022
£
£
6,487
-
Total
2023
Total
2022
£
£
5,871
5,248
435
-		 Total
2022
£
1,199
-
5,429
6,628
Total
2022
£
5,248
-
5,312

-21-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

11 Net income/expenditure

Net income/expenditure
Total Total
2023 2022
£ £
Net income/expenditure is stated after charging:
Amortisation of intangible fixed assets 4,150 7,115
Depreciation of tangible fixed assets 3,964 3,764
Auditor fees 5,871 5,248
Other fees paid to Auditor 435 -

12 Trustees� remuneration

The amounts paid to trustees in respect of examiner duties performed during the year amounted to £13,626 (2022: £12,800). Payments of this nature have been agreed with the Charity Commission.

Trustees' expenses

During the year, 12 trustees received £0 in expenses for travel, subsistence and accommodation (2022: 12 trustees � £1,606 expenses paid)

13 Employee costs

Wages and salaries
National Insurance Costs
Employer�s contribution to defined pension scheme
The number of employees during the year was as follows:
Staff numbers � Average Head Count
Staff numbers � Full Time Equivalent
No. of employees whose total employee benefits (excluding
employer pension costs) were between £70,000 - £80,000:		 Total
2023
£
799,278
61,532
57,400
918,210
No
24
20
1		 Total
2022
£
743,525
62,720
59,220
865,465
No
26
21
1

-22-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

14
Intangible assets
15
Tangible fixed assets
Cost
At 1 September 2022
Additions
Disposals
At 31 August 2023
Depreciation
At 1 September 2022
Charge for the year
Eliminated on Disposals
At 31 August 2023
Net book value:
At 31 August 2023
At 31 August 2022
Cost
At 1 September 2022
Additions
At 31 August 2023
Amortisation
At 1 September 2022
Charge for the year
At 31 August 2023
Net book value:
At 31 August 2023
At 31 August 2022		 Long
leasehold
land and
buildings
£
385,567
-
-		 IT
Development
£
244,516
-
244,516
240,366
4,150
244,516
0
4,150		 Total
£
244,516
-
244,516
240,366
4,150
244,516
0
4,150







Office
fittings,
computer
and
technology
£
88,731
2,100
(4,200)
86,631
88,731
642
(4,200)
85,173
1,458
-		 Total
£
474,298
2,100
(4,200)
472,198
183,344
3,964
(4,200)
183,108
289,090
290,954
385,567
94,613
3,322
-
97,935
287,632
290,954

-23-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

16
Fixed Asset Investments
Listed
Investments
£
Cost or Valuation
At 1 September 2022
-
Additions
Valuation Changes
Net Movement in Cash
484,670
(6,876)
-
Disposals
-
At 31 August 2023
477,794
Carrying Amount
At 31 August 2023
477,794
At 1 September 2022
-
17
Financial instruments
Carrying amount of financial assets
Debt instruments measured at amortised cost
Instruments measured at fair value through income and expenditure
Carrying amount of financial liabilities
Measured at amortised cost
18
Debtors: amounts falling due within one year
Trade debtors
Other debtors
Prepayments		 Cash in
Portfolio
£
-
-
-
15,719
-
15,719
15,719
-
2023
£
747,904
477,794
48,311
2023
£
120,488
-
45,289
165,777		 Total
£
-
484,670
(6,876)
15,719
-
493,513
493,513
-
2022
£
1,548,513
-
68,870
2022
£
184,793
378
36,430
221,601

-24-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

19 Creditors: amounts falling due within one year

Trade creditors
Accruals and deferred income
Taxation and National Insurance
Other creditors		 2023
£
24,844
11,922
18,069
11,545
66,380		 2022
£
35,681
21,159
17,775
12,030
86,645
20
Movement in funds
General funds
Unrestricted funds
Designated funds
Christabel Burniston Fund
Other Designated Funds
Total funds
General funds
Unrestricted funds
Designated funds
Christabel Burniston Fund
Other Designated Funds
Total funds		 At 1 Sept
2022
£
1,546,585
40,000
206,818
1,793,403
At 1 Sept
2021
£
1,540,354
70,000
250,000
1,860,354		 Income
£
1,451,352
-
-
1,451,352
Income
£
1,667,365
-
-
1,667,365		 Expenditure
Transfers &
gains
£
£
(1,690,801)
(37,261)
(37,261)
37,261
(22,995)
-
(1,751,057)
-
Expenditure
Transfers &
gains
£
£
(1,658,261)
(2,873)
(32,873)
2,873
(43,182)
-
(1,734,316)
-		 At 31 Aug
2023
£
1,269,875
40,000
183,823
1,493,698
At 31 Aug
2022
£
1,546,585
40,000
206,818
1,793,403

Christabel Burniston Access Fund

The Fund was set up in 2007, in memory of the late Christabel Burniston MBE, founder of ESB, to offer financial support for access to English Speaking Board examinations, and every application is taken on its merits. The fund was established at the discretion of the trustees, using legacy income received in the year ended 31 August 2009.

Other Designated Funds

Other Designated Funds consist of £119,345 for the development of our Database, Website and CRM System, £39,367 for Product Development, and £25,110 for Resource Development.

The designated funds are all held in cash.

-25-

ENGLISH SPEAKING BOARD (INTERNATIONAL) LIMITED NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2023

21 Company status

The charity is a company limited by guarantee. Each member undertakes to contribute to the assets of the company in the event of a winding-up, to an amount not exceeding £1. At 31 August 2023, there were 79 �friends� who are non-voting members and 10 ordinary members who are also Directors/Trustees.

22 Operating leases

At 31 August 2023, the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Operating leases:
Within one year
Within 2 � 5 years
Over 5 years
23
Related party transactions
Remuneration of key management personnel
Wages and salaries
National Insurance costs
Employer�s contribution to defined pension schemes		 2023
£
1,984
1,810
-
3,793
2022
£
22,080
21,902
-
43,982
2023
£
336,173
38,156
34,745
409,073		 2022
£
321,063
36,986
32,486
390,535

Key management personnel consisted of seven employees for 2023 (2022: seven employees). No guarantees have been given or received.

24 Analysis of changes in net funds

Cash at bank and in hand
Total Cash Flows
Loans due within one year
Loans due more than one year
Obligations under finance leases
Total funds		 At 1 Sept
2022
£
1,363,342
1,363,342
-
-

-
1,363,342		 Cash
flows
Acquisitions
and
disposals
£
£
(751,362)
-
(751,362)
-
-
-
-
-
-
-
(751,362)
-		 New
finance
leases
Foreign
exchange
movements
£
£
-
(283)
-
(283)
-
-
-
-
-
-
-
(283)		 At 31 Aug
2023
£
611,697
611,697
-
-
-
611,697

-26-

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